India Places Retaliatory Tariffs on U.S. Imports
India has announced it will place retaliatory tariffs on U.S. imports into the country after delaying the decision for nearly one year. On June 21, 2018, India had originally announced it would impose tariffs on American goods in response to the Section 232 tariffs on steel and aluminum. Trade talks delayed that decision but India just announced it will move forward with the tariff hike in response to its recent termination of the GSP. The Generalized System of Preferences (GSP) allowed duty free treatment of qualified products from India. The tariffs include 29 U.S. products which include items such as chickpeas, almonds, walnuts, apples, lentils, pears, iron products, steel products and more. The tariffs should bring in nearly $217 million in revenue for the country.
These tariffs went into effect on June 16, 2019 and place duties on imports as high as 120 percent.
For example, the Times of India states that import duty on walnuts increased from 30% to 120%, while duties on chickpeas increased from 30% to 70% and lentils increased to 40%.
According to BBC.com, “The latest tariffs from India come just days before country’s Foreign Minister, Subrahmanyam Jaishankar, is due to meet his US counterpart, Mike Pompeo, at a G20 summit in Japan. Mr. Trump and India’s Prime Minister Narendra Modi are also expected to hold talks.”