India hits back at US with tariff hikes

NEW DELHI: India has submitted a revised list of 30 items, including motorcycles, certain iron and steel goods, boric acid and lentils, to the World Trade Organisation (WTO) on which it has decided to raise customs duty by up to 50 per cent. As duties hiked by the USA on certain steel and aluminium products would have implications of about $241 million on India, the raise in tariffs proposed by New Delhi, too, would have an equal implication on America.

“The US would be collecting $241 million worth of duties by hiking tariffs on certain steel and aluminium items from India. We also proposed to withdraw concessions of similar amount from these 30 products imported by India from the USA,” a source said.

Earlier in May, India proposed to raise duties by up to 100 per cent on 20 products such as almonds, apple and specific motorcycles imported from the USA. The additional duty proposed to be hiked on these items ranges from 10 per cent to 100 per cent.

“The revision is being provided to adjust the products and the tariff rates in accordance with India’s rights reserved vide its notification to the Council for Trade in Goods contained in the World Trade Organisation document...of May 18, 2018,” according to a communication by India to the WTO.

“India hereby reiterates its decision to suspend concessions or other obligations notified to the Council for Trade in Goods on May 18, 2018... of the General Agreement on Tariffs and Trade 1994 and Article 8.2 of the Agreement on Safeguards, that are substantially equivalent to the amount of trade affected by the measures imposed by the United States,” India added in the communication.

It said that the proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the USA, based on the measures of the America. “India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the USA,” it added.