India to push for exemption from US tariff hikes
NEW DELHI WILL SEEK AN EXEMPTION FROM THE TARIFF HIKES, LIKE WASHINGTON HAS GRANTED TO
ITS KEY ALLIES
NEW DELHI: Ahead of the two-day trade talks between the US and India starting Monday, India is keeping its options open to join other affected countries in the World Trade Organization (WTO) against the steel and aluminium tariff hikes imposed by the Donald Trump administration, if it fails to secure an exemption.
Assistant US trade representative Mark Limscott will be leading a delegation of trade officials to New Delhi for inter-sessional talks ahead of the annual Trade Policy Forum meeting between the two countries later this year.
India will take the opportunity to push for an exemption from the tariff hikes, like the US has granted to its key allies European Union, Argentina, Australia, Brazil, Canada, Mexico and South Korea.
“So far we have taken a neutral stand because the US is a strategic ally. Though we are not the key target of America’s tariff hikes, exports worth $300-400 million from India will be impacted, which is not a small amount. We are keeping our options open to join other impacted countries fighting the tariff hikes in WTO at an appropriate time if we fail to secure an exemption,” a commerce ministry official said speaking under condition of anonymity.
According to calculations by Us-based Peterson Institute for International Economics, India can retaliate against the US with $300 million of tariffs while China and Japan each are eligible to retaliate with tariffs of $700 million on US imports.
India’s commerce secretary Rita Teaotia last month said India was surprised and disappointed by the US decision to include it in a list of countries that will face higher tariffs on their exports of steel and aluminium although it is not a major exporter of these items to the US.
Though Trump’s key target has been China with an aim to reduce its over $500 billion bilateral trade deficit, he has not spared India either with whom US has a $20 billion trade deficit.