India To Lift Retaliatory Customs Duties On Eight US Products

NEW DELHI: Following PM Modi’s US visit, India has decided to do away with additional import duties imposed on eight US products, including those on items like chickpeas, lentils and apples. These import duties were imposed by India in 2019, while responding to measures taken by America to ramp up tariffs on certain steel and aluminium products, government sources said.

It was during the recent state visit of Prime Minister Narendra Modi to the US that both countries decided to terminate six WTO (World Trade Organisation) disputes and to remove these tariffs on certain US products imposed in retaliation.

The US decided to levy an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products in 2018, citing grounds of national security. India retaliated in kind in June 2019 when it resorted to imposing customs duties on 28 American products.

The duties levied on these eight products of US-origin would be reverted to the rate currently applied on most-favoured-nation (MFN) basis, after notification by India regarding the rescinding of additional duties, said a source cognizant of the development. A period of 90 days will be needed to end the tariffs.

According to the agreement arrived at, India will remove the additional tariffs of 10 per cent duty on chickpeas, 20 per cent on lentils, Rs 7 per kg on almonds fresh or dried, Rs 20 per kg on almonds shelled , 20 per cent on walnuts, 20 per cent on fresh apples, 20 per cent on boric acid, and 20 per cent imposed on Diagnostic Regents, the sources also said.

The duties, currently being imposed, saw an increase on 28 US products in 2019 in retaliation against the decision by the US to levy increased rate of duties on certain steel and aluminium products.

Lawmakers and industry leaders in the US have expressed their happiness at the announcement of the agreement reached with India in order to end these duties.

The US is India’s largest trading partner with USD 128.8 billion of trade in bilateral goods in 2022-23, which increased from USD 119.5 billion in 2021-22.

Lifting of retaliatory tariffs announced by India will lead to access to the USD 120 million market by more than 1,400 apple growers in the US, said Democratic Party lawmaker Cantwell in a statement.

India was the US' second largest export market for apples before the extra tariffs almost brought it to an end.

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