India’s move to impose higher duty comes after US evicted India from GSP
India has imposed a higher custom duty on as many 28 US products on Saturday. These products will be available at higher prices in the Indian market from today. Almonds, Pulses, walnut are included in the list of those 28 products.
This announcement comes after the US removed from India from GSP (Generalized System of Preferences). GSP is the US trade preference program which allows the duty-free entry of products from various designated beneficiary countries. US President Donald Trump evicted India from the list saying that India is now self-sufficient country and do not need a subsidy from the US.
American exporters will take the major hit after the increased Custom duty
After the Indian government announcement of increased custom duty, American exporters will take a hit as they will have to pay higher prices to sell their products in India.
Earlier 29 products were in the list but artemia, a kind of shrimp was removed later.
The higher custom duty will benefit India with USD 217 million.
America had imposed 25 % import duty on steel and 10 % additional tariff on aluminum
America had imposed 25 % import duty on steel and 10 % additional tariff on the aluminum product last year in May. Before, there weren’t any tariff on both the products. The move had a revenue implication of USD 240 million after the taxes as India is one of the major exporters of these products.
After US evicted India from GSP, it has affected goods worth about 5.5 billion which was implemented on June 5.
Have a news story, an interesting write-up or simply a suggestion? Write to us at email@example.com