ZCZC
BCN-13
INDIA-US-TRADE
India set to raise tariffs on some US goods: reports
NEW DELHI, June 15, 2019 (BSS/AFP) – India has decided to raise tariffs on
imports of 29 goods from the US after having deferred the move several times
since announcing it last year, media reported Saturday.
The government had said last June it would raise import taxes on a slew of
US goods including almonds and apples, apparently irked by Washington’s
refusal to exempt New Delhi from higher steel and aluminium tariffs.
But it delayed raising tariffs several times as trade talks between the
world’s two biggest democracies raised hopes of a resolution.
However President Donald Trump’s decision to strip New Delhi of its
preferential trade status earlier this month appears to have triggered the
latest Indian move.
There would be no further delays in imposing the retaliatory tariffs, the
Economic Times reported, quoting a government official, with the new taxes
due to take effect from Sunday.
The Press Trust of India news agency said the finance ministry would make
a formal announcement soon, although it had already conveyed its decision to
the United States.
The trade tensions come despite Washington’s effort to boost ties with
India as a counterweight to China and Trump’s stated good relations with
Prime Minister Narendra Modi.
Trump and Modi are set to meet at the G20 summit on June 28-29 in Osaka
where the sticky trade issue is likely to be taken up.
It is also likely to figure during talks with US Secretary of State Mike
Pompeo who is set to visit India for talks later this month.
On Wednesday Pompeo had said the US was open to dialogue with India and
would “broach some tough topics”.
US goods and services trade with India stood at an estimated $142.1
billion in 2018. The US trade deficit with India was $24.2 billion, according
to official data.
Washington is already engaged in a full-blown trade war with India’s
regional rival China.
BSS/AFP/HR/1435