India has now submitted a revised list of 30 items, including motorcycle, certain iron and steel goods, boric acid and lentils, to the WTO on which it proposes to raise customs duty by up to 50 per cent.
As duties hiked by the US on certain steel and aluminium products would have implications of about $241 million on India, the raise in tariffs proposed by New Delhi too would have an equal implication on America.
“The US would be collecting $241 million worth of duties by hiking tariffs on certain steel and aluminium items from India, we also proposed to withdraw concessions of a similar amount from these 30 products imported by India from the US,” a source said as per ANI.
Customs duty on motorcycles with engine capacity over 800 cc will be raised up to 50 per cent, on almonds up to 20 per cent, on walnuts up to 20 per cent and on apples up to 25 per cent.
The move came as retaliation to Washington’s move to impose higher duties on Indian steel and aluminium exports.
India in a letter to the World Trade Organisation (WTO) stated that the suspended concessions are substantially equivalent to the amount of trade affected by the measures imposed by the United States.
Earlier India had stated that these suspensions will come into effect earlier than 21 June 2018, in case the US decides to continue the period of application of the measures.
It said that the duty imposed by America has affected steel exports by $198.6 million, while the same on aluminium was $42.4 million.
India has also dragged the US to the World Trade Organisations dispute settlement mechanism over the imposition of import duties on steel and aluminium.
India’s exports of steel and aluminium products to America stood at about $1.5 billion every year. Its exports to the US in 2016-17 stood at $42.21 billion, while imports were $22.3 billion.