NEW DELHI, India - Retaliating against the steep tariff hikes that were imposed by the U.S. on imported steel and aluminum on March 9, India decided to fight back this week, slapping its own duties on a range of U.S. products.
India’s decision to slap increased tariffs on a slew of farm products, steel and iron that is imported from the U.S. is said to have come after the European Union and China, both retaliated against U.S. President Donald Trump’s controversial metal tariff hike.
Further, the decision, which it announced in a government notice also comes a month after India dragged the U.S. to the World Trade Organization’s dispute settlement mechanism over the rise in steel and aluminum duties after it failed to win an exemption.
An Indian government notice said that the country was increasing duties on a slew of farm products, steel and iron imported from the U.S.
Revealing the new tariff rates on most of the products that India purchases from the U.S., India’s Commerce Ministry said that some of the products being slapped with higher duties include certain varieties of apples, almonds, chickpeas, lentils, walnuts and artemia that would carry higher import taxes.
Further, India has also raised duties on some grades of iron and steel products.
According to government data, India currently is the 21st largest agricultural export market for the U.S.
In 2016, figures showed that American exports of agricultural products to India totalled $1.3 billion during the year.
The top agricultural products that India imports from the U.S. include tree nuts ($522 million), cotton ($250 million), pulses ($144 million), fresh fruit ($72 million), and planting seeds ($32 million).
With the U.S. increasing moves that are threatening the break out of a large scale trade war, Trump has not only targeted China, but has also locked horns with some of America’s closest allies including the European Union, Canada and Mexico.
Now, experts have said that the rising trade tensions between the U.S. and some major economies have threatened to derail global growth.