Govt mulls tariff hike on 20 US products

In a retaliatory move, the government has told the World Trade Organization (WTO) that it proposes to raise duties by up to 100 per cent on 20 products, including almonds, apple and specific motorcycles imported from the US from next month, if Washington does not roll back high tariffs on certain steel and aluminium items.

The additional duty proposed to be hiked on these items ranges from 5 per cent to 100 per cent.

“India hereby notifies the Council for Trade in Goods of its decision to suspend concessions or other obligations ... that are substantially equivalent to the amount of trade affected by the measures imposed by the US,” according to a communication by India to the WTO.

The proposed suspension of concessions would be in the form of “an increase in tariffs on selected products originating in the US”.

It also said that India reserved its right to further suspend substantially equivalent concessions and other obligations based on the measures of the US.

The government has urged the US to exempt it from the decision to raise import duties on steel and aluminium products. The country has proposed this move under the WTO’s Agreement on Safeguards.

On March 9, US President Donald Trump imposed heavy tariffs on imported steel and aluminium items, a move that sparked fears of a global trade war. Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from all countries except Canada and Mexico.

“The suspension will come into effect earlier than June 21, 2018, in case the US decides to continue the period of application of the measures... The suspension of concessions will continue to apply until the United States’ safeguard measures are lifted,” it added.

The government has also stated that the US imposed definitive safeguard measures without giving affected members any opportunity for consultations.