India’s retaliatory tariffs on US come into effect for 28 items – Bloomberg

Anil Panchal FXStreet

Having signaled, during late Friday, to retaliate against the US President Donald Trump’s withdrawal of the Generalised System of Preferences (GSP) program for Indian exporters on June 5, Bloomberg reported on late-Sunday that Indian trade measures against 28 products from the US come into effect.

The news report further mentions that India has removed the 29th item—artemia, a kind of shrimp—from the list of products that will attract higher tariffs. The retaliatory tariffs will earn India $217 million in additional revenue.

The report further mentioned that India initially decided to hike the duties on June 21, 2018, when the President Trump hiked custom duties on steel and aluminum products but stepped back on the search of a solution. The negotiations stalled after the US withdrew the GSP program for Indian exporters.

Duties on walnut have been hiked to 120% from 30%, on chickpeas, Bengal Gram and Masur dal, those will be raised to 70% from 30% while the levy on lentils will be increased to 40%, as per the report.

The news report further mentions that India has also dragged the U.S. to the World Trade Organization's dispute settlement mechanism over the imposition of import duties on steel and aluminum.

India's exports to the U.S. in 2017-18 stood at $47.9 billion, while imports were at $26.7 billion.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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