New Delhi: India has hit back at US President Donald Trump’s protectionist policies, hiking customs duty on 29 products, including farm products, steel and iron, which are imported from America. This retaliatory action is in response to the US move to raise tariffs on steel and aluminum products earlier this year, which had an tariff impact of $241 million on India.
Sources said the duty hike by India would have equivalent tariff implications for the United States.
India has said the duty imposed by the US had affected steel exports by $198.6 million and aluminum shipments by $42.4 million. India’s decision to hike duties comes a day after the European Union said it would charge higher import duties on a range of US products. Earlier, China too had raised duties on products imported from the US. These moves by various countries threaten to unleash a global trade war, that could hit world economic growth.
Interestingly, as per the list India submitted to the WTO, it had proposed to hike customs duty on specified motorcycles, that primarily include Harley Davidsons.
However, in government notification there is no mention of duty hike on motor cycle with engine capacity of over 800cc.
In February, India had slashed customs on imported high-end motorcycles like Harley Davidson to 50 per cent but the move had failed to please Mr Trump, who wanted it to be slashed to zero.
According to the government notification, duty hike would come into effect immediately for 28 products, while for artemia, a kind of shrimp, the rate hike would be effective from August 4. It said that the import duty on chickpeas, Bengal gram and masur dal has been increased to 70 per cent from 30 per cent, while that on lentils has been hiked to 40 per cent from 30 per cent.
Shelled almonds imported from the US will now attract import duty at '120/kg as against '100/kg earlier. Almonds in shell will attract import duty at the rate of '42/kg as against '35/kg.
Import duty on walnut in shell will attract customs at the rate of 120 per cent as against 30 per cent earlier. While apples will attract import duty of 75 per cent as against 50 per cent earlier.
The duty on boric acid has been hiked to 17.50 per cent, while the same on phosphoric acid has been raised to 20 per cent from 10 per cent earlier.
Import duty on diagnostic reagents has been doubled to 20 per cent, while binders for foundry moulds has been hiked to 17.5 per cent.
