India is set to impose higher retaliatory tariffs on 28 U.S. products starting from Sunday according to a government order.
India’s latest decision comes after U.S. president Donald Trump recently revoked the trade privileges of India under the GSP or Generalized System of Preferences. In case you didn’t know, India is the biggest beneficiary of the scheme which allowed duty-free exports of up to $5.6 billion.
As a result, India will impose the tariff on several U.S. goods starting from this Sunday. However, this isn’t the first time we have seen such scenarios of increased taxation from india. Earlier last year, India issued an order to raise import takes on a number of U.S. items after the U.S. government denied India’s request to exempt the country from higher steel and aluminum taxes.
However, this time around, the country has decided to implement retaliatory tariffs on the 28 specified goods. The latest increment only applies to U.S. goods only as other same products from other countries won’t have any changes.
Following the latest changes, we will have to wait to see how India’s latest decision impacts the political ties between the countries. U.S. Secretary of State Mike Pompeo is expected to visit India and said that the United States is open to dialogue to resolve trade differences. However, in a recent statement, Pompeo said that in case the current administration changes its policy, India will need to provide more opportunities for U.S. businesses going forward.