NEW DELHI – India will impose higher retaliatory tariffs on 28 U.S. products including almonds, apples and walnuts from Sunday, following Washington's withdrawal of key trade privileges for New Delhi.
The new duties take effect from Sunday, a government notification said, in the latest trade row since the US. President Donald Trump took office in 2017, vowing to act against countries with which Washington has a large trade deficit.
From June 5, President Trump has scrapped trade privileges under the Generalized System of Preferences (GSP) for India, (19659002) India called for "unfortunate" and vowed to uphold its national interests
India was preparing to levy higher tariffs ahead of Prime Minister Narendra Modi's first meeting with Trump on the 28th Summit of the G20 summit in Japan on June 28 and 29.
India initially issued an order in June last year to raise import taxes as high as 1
But New Delhi repeatedly delayed raising tariffs as the two nations engaged in trade talks. Trade between them stood at about $ 142.1 billion in 2018.
India has today amended its previous order to "impose retaliatory duties on 28 specified goods originating in or exported from the USA" while maintaining the existing rate for these goods for all
Higher Indian tariffs on US goods could impact the growing political and security ties between the two nations
U.S. Secretary of State Mike Pompeo, who is expected to visit India this month, said this week the United States was open to dialogue to resolve trade differences with India, through greater access to American markets
India is by far the largest buyer of US almonds, paying $ 543 million for more than half of US almond exports in 2018, U.S. Department of Agriculture data shows. It is the second largest buyer of U.S. apples, taking $ 156 million worth in 2018.
New Delhi's new rules in areas such as e-commerce and data localization have already angered United States and hit companies such as Amazon.com, Walmart Inc., Mastercard and Visa, among others .