Raised India tariffs on US goods to start in Sept

NEW DELHI • India said yesterday that delayed higher tariffs on some goods imported from the United States will go into force on Sept 18.

New Delhi, incensed by Washington's refusal to exempt it from new tariffs, decided in June to raise import tax from Aug 4 on some US products, including almonds, walnuts and apples, but later delayed the move.

Officials from New Delhi and Washington, including US Secretary of State Mike Pompeo and Defence Secretary James Mattis, are scheduled to hold a series of meetings including strategic talks with their Indian counterparts next month.

Trade differences between India and the US have been rising since President Donald Trump took office.

Bilateral trade rose to US$115 billion (S$157 billion) in 2016, but the Trump administration wants to reduce its US$31 billion deficit with India, and is pressing New Delhi to ease trade barriers.

India, the world's biggest buyer of US almonds, in June decided to raise import duties on the commodity by 20 per cent, joining the European Union and China in retaliating against Mr Trump's tariff hikes on steel and aluminium.

It had also planned to impose a 120 per cent duty on the import of walnuts in the strongest action yet against the US.

 

India has proposed to buy petroleum products from the US to help narrow the trade deficit. The US has also emerged as a top arms supplier to India, and US companies are bidding for military aircraft deals worth billions of dollars.

REUTERS

A version of this article appeared in the print edition of The Sunday Times on August 05, 2018, with the headline 'Raised India tariffs on US goods to start in Sept'. Print Edition | Subscribe