India to Impose Its Own Tariffs on Some Goods Imported From the U.S.
14 June 2019 - 2:31PM
Dow Jones News
By Rajesh Roy
NEW DELHI -- India is set to impose higher tariffs on some goods
imported from the U.S. after delaying the plan for about a year,
two government officials with knowledge of the matter said
Friday.
The move, widely seen as a retaliation for Washington's recent
decision to withdraw a key trade privilege from India, comes days
ahead of Secretary of State Mike Pompeo's visit to New Delhi to
boost bilateral ties.
The higher import tax on U.S. goods will have an impact of
around $220 million in terms of cost, one of these officials
said.
A spokeswoman for the Ministry of Commerce and Industry
confirmed the decision, which is expected to be formally notified
by the Finance Ministry and be effective starting June 16.
"We have apprised the U.S. of our planned move, but it's not
retaliatory. We waited for one year and are simply going ahead
now," said one of the officials familiar with the plan.
India in June decided to raise import taxes on 29 U.S. products,
including walnuts, apples, almonds and pulses, by as much as 120%.
But the government put the plan on hold hoping that the U.S. would
reconsider its decision of raising tariffs on some Indian steel and
aluminum exports.
However, the U.S. announced early this month it would withdraw
benefits under the so-called Generalized System of Preferences, or
GSP. That prompted New Delhi to go ahead with tariffs now. India
was the ninth-largest beneficiary of GSP.
The benefit withdrawal will add tariffs of as much as 7% on
Indian exports of goods like chemicals, auto parts and tableware to
the U.S., which in 2018 accounted for more than 11%, or $6.3
billion, of India's total exports of goods valued at $54.4 billion,
according to the Congressional Research Service, a research agency
for the U.S. Congress.
Write to Rajesh Roy at rajesh.roy@wsj.com
(END) Dow Jones Newswires
June 14, 2019 09:16 ET (13:16 GMT)
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