India has revised its proposal at the WTO to impose retaliatory duties on the US, following a tariff hike on steel and aluminium imports. The US raised tariffs from 25 per cent to 50 per cent prompting India to consider suspension of concessions on American goods. The move comes amid ongoing trade negotiations
Representational Image. File Pic
Amid the ongoing trade deal talks, India has revised its proposal to impose retaliatory duties under the WTO (World Trade Organisation). India will be imposing duty norms, which will be against the US. The incremented duties on American tariffs will be on steel and aluminium in view of the further hike in duty by the Trump administration.
As reported by the news agency PTI, the United States of America earlier imposed 25 per cent tariffs on imports of aluminium, steel, and derivative articles on March 12. Soon after, in a few days, on June 3, the taxes by the US were again hiked to 50 per cent, which impacted India’s steel export negatively.
The World Trade Organisation, while addressing the scenario, expressed that "Without prejudice to its earlier notification to the Council for Trade in Goods and the Committee on Safeguards dated May 12, India reserves its right to adjust the products and tariff rates. This request is made in response to the increase in the tariff rate by the US from 25 per cent and valorem to 50 per cent."
It has also been reported that the proposed suspension of concessions or other obligations can take the form of an increase in tariffs on selected products originating in the US.
The media address issued by the WTO highlighted that "the safeguard measures would affect USD 7.6 billion in imports into the United States of the relevant products originating in India, on which the duty collection would be USD 3.82 billion."
Following India’s retaliation to the hiked import duty on steel, the suspension of concessions would result in an equivalent amount of duty collected from products originating in America.
As per PTI, during the May 12 communication, the duty collection figure was stated as USD 1.91 billion.
During US President Donald Trump’s first tenure in 2018, the US imposed a 25 percent duty on certain steel items and a 10 per cent duty on aluminium products on the grounds of national security. However, India, while retaliating against hiked import duties in June 2019, slapped customs duties on 28 US products. The products on which India hiked the import duty included almonds and walnuts.
Considering the hiked import duty by the United States of America, India also filed a complaint in the WTO.
The proposal assumes significance as both countries are negotiating a Bilateral Trade Agreement (BTA). The Indian team is also expected to visit Washington next week for trade talks in the US, as per PTI.
(With PTI Inputs)
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