situation report

India, U.S.: New Delhi Expected to Enact Long-Delayed Tariffs on U.S. Exports

2 MINS READJun 14, 2019 | 17:35 GMT

What Happened: Unnamed Indian officials have confirmed that the country will institute tariffs on a handful of U.S. agricultural and manufacturing goods in response to the White House revoking its benefits under the U.S. Generalized System of Preferences, the Times of India reported June 14. The move had been anticipated since last year, when India threatened to impose the duties after the United States would not waive blanket tariffs it placed on steel and aluminum imports, an Indian demand as the two sides negotiate a trade package.

Why It Matters: India is taking a careful course in its response to the U.S. decision on revoking GSP benefits, with the timing of its tariff announcement expected ahead of a meeting between U.S. President Donald Trump and Indian Prime Minister Narendra Modi on the sidelines of the G-20 summit in Japan at the end of June. India is watching to see whether the United States will launch an investigation into Indian trade practices under Section 301 of the U.S. Trade Act of 1974. The U.S. probe, if initiated, would not conclude until 2020 at the earliest, but it could pave the way for a wider disruption the countries' trade relationship.  

Background: In 2018, the U.S.-India trade in goods and services totaled $142 billion, with an Indian trade surplus of $24.3 billion.

Read More: 

U.S., India: After Almost 50 Years, Washington Nixes New Delhi's Trade Benefits (June 3, 2019)

Five Challenges Facing India's Reelected Government (May 24, 2019)

India Waits Warily for a U.S. Trade Salvo (May 17, 2019)



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