In a retaliatory move, India has told the WTO that it proposes to raise duties by up to 100 per cent from next month on 20 products imported from the US — such as almonds, apples and specific motorcycles — if Washington does not roll back high tariffs on certain steel and aluminium items.
It may hike the duty from 5 per cent to 100 per cent. “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 US,” said a communication by India to the WTO.
It further said the proposed suspension of concessions would be in the form of “an increase in tariffs on selected products originating in the US”. It also said that India reserves the right to further suspend substantially equivalent concessions and other obligations based on the measures taken by the US.
‘No consultations’
India had earlier urged the US to exempt it from the decision to raise import duties on certain steel and aluminium products.
The country has proposed this move under the WTO’s Agreement on Safeguards.
On March 9, US President Donald Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from all countries except Canada and Mexico. The move sparked fears of a global trade war.
India has also said the US had imposed definitive safeguard measures without giving affected members any opportunity for consultations. “India wishes to clarify that suspension of concessions shall be equivalent to the amount of trade affected by the US’ measures.
To this end, India reserves the right to adjust the specific products for which suspension of concessions is effectuated, and its right to adjust the additional rate of duty imposed on such products,” it said.