India on Thursday raised import tariffs on a slew of items in retaliation of the US impositions of higher levies on some products shipped from here.
India followed the European Union in slapping retaliatory levies on US goods. Wth that, the global trade war showed signs of deepening further.
China also said it is “fully prepared” to respond to any new list of US import tariffs, according to a commerce ministry spokesman, who said the nation will use a combination of quantitative and qualitative measures.
Trump on Monday evening ordered an identification of $200 billion in Chinese imports for additional import tariffs of 10 percent — with another $200 billion after that if Beijing retaliates.
According to this decision, the import tariff on chickpeas and bengal gram, or chana, has been increased to 70% and will take effect from August 4. This escalating international trade tensions have started damaging confidence among companies, threatening the global economic expansion.
Today’s decision is considered to be one among a chain of actions from India against Trump’s administration unilaterally imposing higher tariffson US imports.
New Delhi, in letter, written on June 16 to the World Trade Organisation (WTO) notified its decision to increase import tariffs on 30 items from the U.S. amounting to $240 million, in retaliation against tariffs imposed by the latter on aluminium and steel imports.
The Trump administration this week ratcheted up its accusations that China’s trade and intellectual property practices are threatening US economic interests.
The European Union triggered the first phase of retaliation against the US over its metal-import tariffs imposed on national-security grounds, making good on more than three months of threats to hit American goods with tit-for-tat levies.
Japan has reserved the right to respond too, although it hasn’t yet. Canada’s retaliatory measures begin on July 1, and Mexico and other nations have also announced they will respond.
This string of retaliatory measures against the U.S., however, is particularly surprising because Commerce Minister Suresh Prabhu, on his return from the U.S. recently, indicated that the two countries would try to resolve their issues through bilateral dialogue.