US High Tariff Strikes India's Steel and Aluminum Export and India Begins to Counterattack

Release time：Jun 28, 2019 From：admin

India has submitted a letter to the WTO stating that if Washington does not reduce its high tariffs on imported steel and aluminium, it will impose tariffs of up to 100% on 20 products imported from the United States from next month, including American almonds, apples and specific motorcycles.

The additional tax on the proposed projects ranges from 5% to 100%.

In accordance with India's letter to the WTO, India hereby informs the Council of its decision to suspend concessions or other obligations... substantially equivalent to the volume of trade affected by measures implemented by the United States.

It is reported that the proposed suspension of concessions will take the form of "tariff increases on specific products originating in the United States". In addition, India reserves the right to further suspend essentially equivalent concessions and other obligations under United States measures.

India earlier urged the United States to waive its decision to raise import tariffs on certain steel and aluminium products. This was proposed by the country in accordance with the WTO Safeguards Agreement.

On March 9, President Trump imposed high tariffs on imports of steel and aluminium products, raising concerns about the global trade war. Trump signed two declarations imposing tariffs of 25% and 10% on steel and aluminium imports from all countries except Canada and Mexico.

"If the United States decides to continue implementing these measures, the suspension of concessions will take effect before June 21, 2018," the letter also disclosed. Until American safeguards are lifted, suspension of concessions will continue to apply."

India also indicated that the United States implemented clear safeguards without giving affected members any opportunity to consult.

The country said the tax imposed by the United States had affected India's steel exports by $134.4 million, while the impact on aluminium exports by $31.16 million.

However, the United States said that Trump's tax increase was not a safeguard.

India also dragged the United States into the WTO dispute settlement mechanism on import tariffs on steel and aluminium. India said the decision would affect exports of these products to the United States and would not conform to Global trade norms.

India exports about $1.5 billion of steel and aluminium products to the United States each year. In fiscal year 2016-17, India exported US$42.1 billion and imported US$22.3 billion.