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India Proposes Retaliatory Tariffs On The US Worth $241 Million

DIVYIA ASTHANA | 0
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| June 16 , 2018 , 15:36 IST

After the US announced duties on certain steel and aluminium imports from India worth $241 million, India has submitted a list of items to the World Trade Organisation regarding retaliatory tariffs worth $241 on the US, media reported on Saturday.

The revised list of 30 items includes motorcycles, certain iron and steel goods, boric acid and lentils, on which India proposes to raise customs duty by up to 50 percent.

"The US would be collecting $241 million worth of duties by hiking tariffs on certain steel and aluminium items from India, we also proposed to withdraw concessions of similar amount from these 30 products imported by India from the US," a source said to PTI.

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"The revision is being provided to adjust the products and the tariff rates in accordance with India's rights reserved vide its notification to the Council for Trade in Goods contained in the WTO document of May 18, 2018," the source added.

An official communication from India to the World Trade Organisation said, "India hereby reiterates its decision to suspend concessions or other obligations notified to the Council for Trade in Goods on May 18, 2018...of the General Agreement on Tariffs and Trade 1994 and Article 8.2 of the Agreement on Safeguards, that are substantially equivalent to the amount of trade affected by the measures imposed by the United States."

The official communication further added, "India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the US."

US President Donald Trump on March 9 had imposed hefty tariffs of 25 percent on steel and 10 percent on aluminium from all countries except Canada and Mexico. The exception to Canada and Mexico was also withdrawn later on.

The US's tariffs on steel exports affected India by $198.6 million while the aluminium tariffs affected India by $42.4 million.