India, which has been silent till now, is finally retaliating against Trump's tax policy for the first time. It is reported that india has submitted a proposal to impose duty on American products to the World Trade Organization (WTO). It is believed that this step has been taken in response to the imposition of 25 percent additional tariff on steel and aluminum imports by the US in march 2024.
On which products will additional tariff be imposed
The May 12 document sent to the WTO clarifies that "the suspension of the proposed concessions or other obligations will be in the form of tariff increases on selected products coming from the US." However, it has not been clarified yet on which specific products this tariff will be applicable. In march, the US imposed a 25 percent tariff on steel and aluminum imported from other countries including India. This tariff is an extension of the policy introduced in 2018 during Donald Trump's first term. This move has a direct impact on a major steel producing country like India. india is the world's second largest raw steel producer.
Impact on products worth billions
India has said in its document that this decision of the US has affected India-made products worth about $7.6 billion, which are exported to the US. Along with this, the trump administration has also talked about imposing a reciprocal tax of up to 26 percent on indian goods.
Talks on trade deal
Amidst this atmosphere of tariff war, india and the US are also in the process of finalizing a comprehensive trade deal. According to a Bloomberg report, the two countries can reach an agreement by the end of this year. india has indicated that it is ready to reduce its tariff gap with the US by two-thirds.
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