India to impose retaliatory measures on US exports from August 4

India today, on June 21, 2018, notified that it would impose retaliatory tariffs against 30 US products from August 4, 2018. The products are worth of US$240 million to counter Trump administration’s move to unilaterally hike duties on Indian aluminium and steel exports.

Although the Indian retaliatory tariffs could have come into effect immediately, the country seems to be given some more time to the US keeping in mind the upcoming negotiations for a trade package with the US.  Assistant US trade representative (USTR) Mark Linscott is likely to visit India last week of this month to begin the negotiations.

Last week on June 13, India had intimidated the World Trade Organisation (WTO) to impose duties on 30 US products, including motorcycles with engine capacity over 800cc (including Harley-Davidson), fresh apples, almonds, and phosphoric acid.

Prior to this retaliatory tariffs decision, India had also urged the US to exempt it from additional 25 per cent tariff on steel and 10 per cent on aluminium, which was imposed on the grounds of national security. But the request was overlooked because of which India dragged the US to the dispute settlement mechanism in the WTO.

Trump, on the other hand, has raised the issue of higher tariffs on Harley-Davidson motorcycles levied by India and has threatened to put reciprocal taxes on Indian bikes.

While addressing the press on the sidelines of the G7 summit in Canada’s Quebec City last week, Trump had specifically named India, accusing it of charging 100 per cent tariff on some US goods. “We’re like the piggy bank that everybody is robbing,” Trump said.