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Retaliatory Import Tariffs On US Products

  • 16 May 2019

Why is it in News?

India extended the deadline to impose retaliatory import tariffs on 29 US products till June 16 from the earlier date of May 16 with a hope to resolve trade issues with the US and also because the US has not withdrawn the Generalised System of Preferences which was to happen in the beginning of May.

Background:

India had announced retaliatory tariffs worth $230 million on about 29 American goods in June 2018 as a comeback to imposition of penal tariffs on Indian steel and aluminium by the US. But India has since been postponing implementation of these duties hoping to resolve trade concerns.

Generalized System of Preferences (GSP):

  • The US had recently announced that it would be withdrawing the GSP benefits granted to India which offer duty-free access to the American market for more than 3,000 items from India.
  • The US wishes for India to tackle the ‘price cap’ matter for medical devices, extends greater market access for dairy and agricultural products and also lower high import tariffs for mobile phones.