To Trump administration’s move of hiking duties on Indian steel
and aluminium products, India gives back a fitting retaliation by hiking tariff
against 30 US products worth $ 240 million; this retaliatory hike takes effect
from 4 August.
India appears to be confident of fair deal when Assistant US trade
representative (USTR) Mark Linscott who is likely to visit India in the last
week of June for negotiations.
To India’s request to exempt it from 25% steel tariff and 10%
aluminium tariff imposed by the US, Trump administration returned a negative
response and in fact India has also sought solution taking the issue to the
dispute settlement mechanism in the WTO.
Following the European
Union and China in retaliatory action to Trump administration’s hike of import
tariff, India increased duties on a slew of farm products,
steel and iron imported from the United States.
In tariff rates issued late on Wednesday, the
commerce ministry named some varieties of apples, almonds, chickpeas, lentils,
walnuts and artemia that would carry higher import taxes. Most of these are
purchased from the United States.
While the European Union, China and India have retaliated to Trump
administration’s move of import tariff hike, Japan is yet to strike. Canada’s
retaliatory measures begin on July 1, and Mexico and other nations have also
announced they will respond.
“The US abuses tariffs to trigger trade wars everywhere
around the globe and that will severely damage the world trade order, hurt the
interests of trading partners, and also hurt its domestic companies and
people,” Ministry of Commerce spokesman Gao Feng said at a regular briefing in
Beijing on Thursday. The US “always use other nations as scapegoats for their
own problems,” he said.
Speaking on the sidelines of G7 Summit in Canada’s Quebec City last
week, US President singled out India and accused of charging 100% tariff on US
goods and made a remark that seemed to imply that America is being robbed.
“We’re like the piggy bank that everybody is robbing,” Trump said.
The deepening trade war causing tension between the
United States and some major economies puts a stiff hurdle on the path of
global growth if not derailing it immediately.