India is likely to impose increased duties on 29 goods imported from US, from April 1. Adopting a trough stand against US, one of its biggest trading partners, India is likely to impose increased duties on 29 goods imported from US which has withdrew benefits from India under Generalised System of Preferences (GSP).
Higher duties have been proposed on US walnuts, lentils, boric acid etc. imposing an additional burden of around $290 million on them. The US had announced heavy tariffs on imported steel and aluminium items from India on March 9, 2018, although they have not been imposed yet. Similarly, the counter-levy from Indian side was to come into effect from August 4, 2018, but has been put on hold since then.
Now, since the US has terminated preferential treatment to imports from India under GSP, India is most likely to let the higher levy come into effect very soon.
It is to be noted here there the Indo-US trade is really thriving in recent times and it holds ample opportunities for both the countries to further explore their bilateral trade potentials. U.S. goods and services trade with India totalled an estimated $126.2 billion in 2017. Exports were $49.4 billion; imports were $76.7 billion. The U.S. goods and services trade deficit with India was $27.3 billion in 2017.
India is currently the 9th largest goods trading partner with $74.3 billion in total (two way) goods trade during 2017. Goods exports totalled $25.7 billion; goods imports totalled $48.6 billion. The U.S. goods trade deficit with India was $22.9 billion in 2017.
Trade in services with India (exports and imports) totalled an estimated $51.9 billion in 2017. Services exports were $23.7 billion; services imports were $28.1 billion. The U.S. services trade deficit with India was $4.4 billion in 2017.