India set to eliminate retaliatory customs tariffs on eight American goods

During the recent state visit of Prime Minister Narendra Modi to the US, both countries decided the termination of six WTO (World Trade Organisation) disputes and the removal of these retaliatory tariffs on certain US products.

PTI

June 26, 2023 / 06:47 IST

PM Modi with Joe Biden at the White House

According to government sources, India has decided to lift the additional duties on eight American products, including chickpeas, lentils, and apples. These tariffs were implemented in 2019 as a response to the United States' decision to raise tariffs on specific steel and aluminum goods. During Prime Minister Narendra Modi's recent state visit to the US, both nations agreed to resolve six World Trade Organization (WTO) disputes and eliminate the retaliatory tariffs on certain US products.

In 2018, the US imposed an import duty of 25 percent on steel products and 10 percent on certain aluminium products on grounds of national security. In retaliation, India in June 2019 imposed customs duties on 28 American products. The duties on these eight US-origin products would revert to the currently applied most-favoured-nation (MFN) rate after India notifies the rescinding of additional duties, one of the sources, who is aware of the development, said.

The tariffs would end in 90 days. As part of the agreement, India will be removing additional duty on chickpeas (10 percent), lentils (20 percent), almonds fresh or dried (Rs 7 per kg), almonds shelled (Rs 20 per kg), walnuts (20 percent), apples fresh (20 percent), boric acid (20 percent), and Diagnostic Regents (20 percent), the sources added.

The duties were increased on 28 US products in 2019 in retaliation to the US decision to increase duties on certain steel and aluminium products. US lawmakers and industry leaders have welcomed the announcement of an agreement with India to end these duties.

The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to $128.8 billion as against $119.5 billion in 2021-22. "India has announced it is lifting retaliatory tariffs that all but shut down the Indian market for Washington's more than 1,400 apple growers and now our growers will once again have access to this $120 million market," Cantwell, the Democratic Party lawmaker, has said in a statement. "India has announced it is lifting retaliatory tariffs that all but shut down the Indian market for Washington's more than 1,400 apple growers and now our growers will once again have access to this $120 million market," Cantwell, the Democratic Party lawmaker, has said in a statement.