New Delhi: India has decided to raise customs duty on 29 products, including almond, walnut and pulses, imported from the US as a retaliatory action against the tariff hike by Washington.
The 'tit-for-tat' duty hike decision by India is similar to that of European Union and China which decided to levy higher import duties on a variety of US products in retaliation to the protectionist policies adopted by America.
Last week, India had submitted to the WTO a list of 30 items on which it proposed to raise customs duty by up to 50 percent.
In the notification, there is no mention of duty hike on motor cycle with engine capacity of over 800cc.
As per the list India submitted to the WTO, it had proposed to hike customs duty on specified motorcycles, which include Harley Davidson, to 50 percent.
Here is all you want to know about India's customs duty hike on US products
- The duty hike would come into effect from August 4.
- While import duty on walnut has been hiked to 120 percent from 30 percent, the same for shelled almond has been increased to Rs 120/kg from Rs 100/kg earlier.
- The import duty on chickpeas, Bengal gram (chana) and masur dal has been increased to 70 percent from 30 percent earlier, while that on lentils has been hiked to 40 percent from 30 percent.
- With the higher customs duty coming into effect from August 4, this would give ample time to the US to take a considered view on all the contentious bilateral trade issues with India.
- As per the notification, apples imported from the US will attract duty of 75 percent as against 50 percent earlier.
- The duty on boric acid has been hiked to 17.50 percent, while the same on phosphoric acid has been raised to 20 percent from 10 percent each earlier.
- Import duty on diagnostic reagents has been doubled to 20 percent, while binders for foundry moulds has been hiked to 17.5 percent.
- Flat rolled products on iron has been raised to 27.50 percent from 15 percent earlier, while certain flat rolled products on stainless steel would now attract 22.50 percent duty as against 15 percent earlier.
- Duty on artemia, a kind of shrimp, has been raised to 30 percent.
- For automobiles and earth moving equipment, SIM socket/other mechanical items (metal) for use in manufacture of cellular mobile phones, the duty has been hiked to 25 percent from 15 percent.
- The decision to hike duties is in retaliation to the unilateral increase in tariff by the US on certain steel and aluminium products earlier this year which had tariff implication of USD 241 million on India.
- The duty hike by India would have an 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 USD 198.6 million and aluminium shipments by USD 42.4 million.
With PTI Inputs