In a retaliatory move, India has told the WTO that it proposes to raise duties by up to 100% on 20 products such as almonds, apple and specific motorcycles imported from the U.S. from next month, if Washington does not roll back high tariffs on certain steel and aluminium items.
Additional duty proposed to be hiked on these items ranges from 5% to 100%.
“India hereby notifies the Council for Trade in Goods of its decision to suspend concessions or other obligations ... that are substantially equivalent to the amount of trade affected by the measures imposed by the United States,” according to a communication by India to WTO. It said that the proposed suspension of concessions would be in the form of “an increase in tariffs on selected products originating in the U.S.”
It also said that India reserves its right to further suspend substantially equivalent concessions and other obligations based on the measures of the U.S..
Plea to U.S.
India had earlier urged the U.S. to exempt it from the decision to raise import duties on certain steel and aluminium products.
The country had proposed this move under the WTO’s Agreement on Safeguards. On March 9, U.S. President Donald Trump imposed heavy tariffs on imported steel and aluminium items, a move that had sparked fears of a global trade war.
Mr. Trump signed two proclamations that levied a 25% tariff on steel and a 10% tariff on aluminium imported from all countries except Canada and Mexico.
“The suspension will come into effect earlier than 21 June, 2018, in case the U.S. decides to continue the period of application of the measures.” it added.
