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India to impose retaliatory tariffs on U.S. goods
Why is it in the news?
- As per the official statement from Commerce Ministry, India has decided to impose retaliatory tariffs on 29 goods imported from the U.S. from June 16 onwards.
- The US had announced its decision to withdraw the preferential duty benefits to India in March.
More in the news
- Background
- India has repeatedly asked for exemption from these higher tariffs, but to no avail.
- However, negotiations continued for about a year, with India repeatedly extending the deadline for the imposition of retaliatory tariffs.
- Significance of the move:(1) The tariffs will place a burden of $220-290 million on the U.S., about the same amount imposed by Washington on India in 2018.(2) It will cut the benefits to number of U.S. exporters.(3) Also, the imposition of increased import tariffs on agricultural commodities will help domestic farmers.
Source
The Hindu, LiveMint.