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India announces retaliatory trade tariffs against the US
BBC
Sat, 15 Jun 2019 22:13

India announces retaliatory trade tariffs against the US

BBC
Sat, 15 Jun 2019 22:13

India has said that, from Sunday, it will impose tariffs on 28 US products, including almonds and apples.

India announces retaliatory trade tariffs against the US
The new duties, some as high as 70%, are in response to Washingtons refusal to exempt Delhi from higher taxes on steel and aluminium imports. Earlier this month, US President Trump also announced the US was withdrawing Indias preferential trade treatment.Tariffs of up to 120% were announced by India in June last year, but trade talks had delayed their implementation.In an announcement on Friday, Indias Ministry of Finance said the decision was in the "public interest".An earlier list had also listed a 29th item - artemia, a type of shrimp - but this was removed.Is trade spoiling the Trump-Modi bromance?

India no longer fastest-growing economy

US-India bilateral trade was worth $142bn (£111bn) in 2018, a sevenfold increase since 2001, according to US figures.But $5.6n worth of Indian exports - previously duty-free in the US - will be hit now the country has lost preferential treatment under Americas Generalized System of Preferences (GSP).

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The move is the latest push by the Trump administration to redress what it considers to be unfair trading relationships with other countries.Tensions have since been rising between the two countries. Last year, India retaliated against US tariff hikes on aluminium and steel by raising its own import duties on a range of goods. President Trump has also threatened to impose sanctions if India purchases oil from Iran and if it goes ahead with plans to buy Russian S-400 anti-aircraft missiles.The latest tariffs from India come just days before countrys Foreign Minister, Subrahmanyam Jaishankar, is due to meet his US counterpart, Mike Pompeo, at a G20 summit in Japan. Mr Trump and Indias Prime Minister Narendra Modi are also expected to hold talks.