New Delhi, June 15: Having held back its tit-for-tat action for around a year, India has decided to slap retaliatory tariff on 29 US goods—including almond and apple—from June 16 in response to the Trump administration’s move last year to impose extra levies on steel and aluminium, in a potential escalation of trade tussle.
The latest move to impose retaliatory tariffs worth $235 million comes just over a week after the US formally withdrew export incentives of roughly $190 million a year on Indian exports of $5.6 billion under the so-called generalised systems of preference (GSP), dealing a blow to a trade deal that was negotiated for months. “The department of revenue will notify the decision (to levy retaliatory tariff) tonight or tomorrow,” said a senior government official.
The decision comes ahead of the scheduled meeting between Prime Minister Narendra Modiand US President Donald Trump on the sidelines of the G20 meeting on June 28-29 in Japan.
US secretary of state Mike Pompeo is expected to visit New Delhi on June 25 to have discussion with external affairs minister S Jaishankar.
In June 2018, after the US imposed 25% extra duty on steel and 10% on aluminium supplies from select nations, including India, New Delhi had informed the World Trade Organization (WTO) its decision to slap retaliatory tariffs, having failed to persuade Washington to give it a waiver from the levy. The initial plan was to implement the decision on August 4, 2018, which was then deferred several times, as New Delhi hoped to clinch a broader trade deal with Washington.