Trade dispute deepens between India and US
As trade war deepens across the globe, India doesn’t want to stay back wounded. Hike in import tariffs levied by India will counter the increased import duty imposed by the US on steel and aluminium imports. The tariff will be in place from August 4.
US imposed unilateral tariff’s on all nations exporting steel and aluminium to the US, which includes China and Europe on a major basis. In a counter attack, China and Europe also imposed a similar amount of tariff on US imports
India has asked the US to exempt India from 25 per cent steel tariff and 10 per cent aluminium tariff. However, this plea was rejected following which India dragged US to WTO to dispute settlement mechanism over the matter.
Trump has accused India of imposing a high tariff on Harley Davidson at 100 per cent. In a list given to WTO on May 18 of 20 items worth US$166 million on it was proposing to hike tariffs. However, it revised the list in which it has reduced additional duties from 100 per cent to 50 per cent on Harley Davidson. India decided to impose tariff on 30 products worth $240 million that will come in to effect on August 4.