India’s retaliatory tariffs on 28 American goods take effect

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NEW DELHI, June 17 (Xinhua/GNA) — India’s newly increased

tariffs on 28 American goods came into effect from Sunday, as a

retaliatory measure to Washington’s recent refusal to exempt

India from higher steel and aluminum tariffs.

 India on Saturday night officially announced to hike import

taxes on as many as 28 American goods following the United States

ending preferential trade treatment for India.

 By imposing the hiked tariffs, India would earn about 217

million U.S. dollars additional revenue from such imports, which

is equivalent to what the United States would pocket by imposing

higher tariffs on imports of steel and aluminum from India.

 In a “Notification” issued by the Department of Revenue of the

Ministry of Finance late Saturday night, the Indian government

said that customs duty was hiked on as many as 28 American

products, thus making these items costlier in the Indian market.

 The items include almonds, apples, acids and chemicals, official

sources from the ministry said. Earlier, the list comprised 29

items, “but one item has been dropped,” an official from the

country’s Ministry of Commerce and Industry said.

 India removed “Artemia,” a kind of shrimp, from the list.

Amending its earlier notification issued on June 30, 2017, the

Central Board of Indirect Taxes and Customs (CBIC) under the

Finance Ministry’s Department of Revenue said last night that the

fresh Notification will implement the imposition of retaliatory

duties on 28 specified goods, originating in or exported from the

United States, and preserve the existing MFN (most favoured

nation) rate for all these goods for all countries other than the

United States.

 The Indian government on June 21 last year decided to impose

these duties in retaliation to the U.S. decision of significantly

hiking customs duties on certain steel and aluminium products. In

March 2018, the United States imposed 25 percent tariff on steel

and 10 percent on aluminium products.

 Earlier, there was no duty on these goods. This had pushed India

to impose retaliatory tariffs on U.S. products in a bid to come

at par with the United States in terms of additional custom duty

“earnings.”

 According to official sources from the government, the country

had delayed imposition of customs duty at least eight times in

the hope that the U.S. administration would budge.  

 Finally, India decided to “implement the imposition of

retaliatory duties on 28 specified goods originating in or

exported from U.S.,” the official sources said.

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