In what could potentially aggravate trade tensions between India and the US, india has decided to impose long-pending retaliatory tariffs on 29 US products. u.s. had withdrawn duty-free benefits for Indian exports under its GSP w.e.f June 5, 2019.
About:
Timeline: Events that led to the decision
In March 2018, the U.S. imposed 25% tariff on steel and 10% import duty on aluminium. India was one of the major exporters of these items.
In June 2018, India decided to impose duties in retaliation, but extended the deadline.
On June 5, 2019, the U.S. withdrew export incentives to India under its Generalised System of Preferences (GSP) programme. India was the largest beneficiary of GSP.
India now wants to implement its decision to impose retaliatory tariff on 29 U.S. items from June 16, 2019.
Major products to be impacted: Walnut, chickpeas, Bengal gram, masur dal, boric acid, binders for foundry moulds, domestic reagents, apples etc.
Possible impact: The tariffs will place a burden of $220-290 million on the U.S., commensurate to the impact on India due to the U.S. tariffs on aluminium and steel imports.
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