India, top buyer of US almonds, hits back with higher duties

NEW DELHI: India, the world’s biggest buyer of US almonds, raised import duties on the commodity by 20 per cent, a government order said, joining the European Union and China in retaliating against President Donald Trump’s tariff hikes on steel and aluminium.

New Delhi, incensed by Washington’s refusal to exempt it from the new tariffs, also imposed a 120 per cent duty on the import of walnuts in the strongest action yet against the US. The move to increase tariffs from Aug 4 will also cover a slew of other farm, steel and iron products.

It came a day after the European Union said it would begin charging 25 per cent import duties on a range of US products on Friday, in response to the new US tariffs.

India is by far the largest buyer of US almonds, purchasing over half of all US almond shipments in 2017.

A kilogram of shelled almonds will attract duty of as much as 120 rupees ( US$ 1.76) instead of the current 100 rupees, the Commerce Ministry said.

Last month, New Delhi sought an exemption from the new US tariffs, saying its steel and aluminium exports were small in relation to other suppliers.

But its request was ignored, prompting India to launch a complaint against the United States at the World Trade Organization.

“India’s tariff retaliation is within the discipline of trade tariffs of the World Trade Organization,” said steel secretary Aruna Sharma.

Trade differences between India and the United States have been rising since US President Donald Trump took office.

Bilateral trade rose to US$ 115 billion in 2016, but the Trump administration wants to reduce its US$ 31 billion deficit with India, and is pressing New Delhi to ease trade barriers.

Earlier this year, Trump called out India for its duties on HarleyDavidson motorbikes, and Prime Minister Narendra Modi agreed to cut the import duty to 50 per cent from 75 per cent for the high- end bikes.

But that has not satisfied Trump, who pointed to zero duties for Indian bikes sold in the United States and said he would push for a “reciprocal tax” against countries, including US allies, that levy tariffs on American products.

In the tariff rates issued late on Wednesday, the commerce ministry named some varieties of almonds, apples, chickpeas, lentils, walnuts and artemia that would carry higher import taxes. — Reuters