Responding to the US import tariffs on certain steel and aluminium products, India has decided to suspend concessions on 30 products being imported from the US. In a notification to the World Trade Organisation (WTO) on June 14, India emphasised that the tariffs will be substantially equivalent to the amount of trade affected due to the US’ measures. The products are likely to include motorcycles, certain iron and steel goods, boric acid and lentils.
“The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States, based on the measures of the United States,” the notification read. “India wishes to clarify that suspension of concessions shall be equivalent to the amount of trade affected by the United States’ measures.”
“India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the US,” it added.
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According to news agency PTI, US’ decision to hike import duties will have an impact of about $241 million — $198.6 million on steel and $42.4 million on aluminium. India exports only about 4 per cent of its steel and 2 per cent of aluminium to the US. India is looking to hit back with tariffs amounting to the same.
India notified World Trade Organisation of its decision to suspend concessions to US on 30 products, after safeguard measures imposed by US on imports of certain articles. India clarified that suspension of concessions shall be equal to amount of trade affected by US’ measures. pic.twitter.com/SAyY6HWYsf
— ANI (@ANI) June 16, 2018
Earlier this year, US President Donald Trump announced a 25 per cent and 10 per cent tariff on imported steel on aluminium respectively from all countries, except Canada and Mexico. US is the world’s largest steel-consuming nation. Trump’s announcement, in line with his America First policy, sparked fears of a trade war after countries began mulling imposing their own tariffs.