India hikes customs duty on goods imported from the US
America once against raised trade war by increasing tariffs on the steel and steel products of America. Even India also has been burdened with this new customs duty imposed by the US. India is facing an estimation of about $ 241 million burden due to US tariff hikes.
India’s counter reacted to America action and increased customs duty on goods imported from the country. All these tariffs were increased on nearly 30 items. The hike will be effective from August 4, the Finance Ministry said in a statement.
According to the latest decision, customs duty on Peanuts is 60 per cent, And about 30 per cent on lentils (pulses), 7.5 per cent on boric acid and 15 per cent import duty on artemia shrimp.
Apart from these, tariffs on steel, iron products, apples, tube, pipe fittings, nuts, screws, bolts etc have been increased. However, the Finance Ministry said it did not have imposed any tariff on imported motorcycles.
Last week, The Indian government had decided to increase import tariffs on American products. The list of 30 products was sent to the World Trade Organization (WTO). The Center has now announced that it will increase tariffs on the rest of the 29 products except the motorcycles. The duty hike by India would have equivalent tariff implications for the US.
On March 9, US President Donald Trump imposed heavy tariffs on imported steel and aluminium items, a move that has sparked fears of a global trade war. India has said the duty imposed by the US has affected steel exports by $198.6 million and aluminium shipments by $42.4 million.
India exports steel and aluminium products worth about $1.5 billion to the US every year. India’s exports to the US in 2016-17 stood at $42.21 billion, while imports were $22.3 billion.