Ministry of
Commercehas
announced toimpose
retaliatory tariffs on US goodsthat will be effective
fromJune 16
onwards. The retaliatory tariffs on29 goods imported from
the U.S. The Ministry initially decided to impose tariffs in 2018. The
decision is ahead of the meeting betweenModi and Trumpon the sidelines of
theG20 summit in
Japan.The move made by the trade ministry was approved by
theMinistry of
External Affairs.
The tariffs will be applied on$220-290 million worth of goodsthat
are imported from the US, and will have about the same impact as the tariffs
imposed by Washington on India in 2018.
Ministry
of Financesaid that
theCommerce
ministrywill release the official notification of the
tariffs before 16 June.
Why
India is imposing tarrifs:
In March 2018, the US imposed25% tariff on steel and 10%import
duty onaluminium.
India was one of the major exporters of these items.
Trarrifs on 29 major products ere impacted which
includes Chickpeas, Bengal gram, Mansur dal, Boric acid, domestic reagents,
apples, Binders for foundry moulds. India repeatedly asked for exemption from
these higher tariffs, but US did not respond.
On June 2018, India decided to retaliate byimposing dutiesbut
extended the deadline.
On 5 June 2019, the U.S. withdrew export
incentives to India under itsGeneralized
System of Preferences (GSP) programme.India was thelargest beneficiaryof
GSP.
