Citing the tariffs are not safeguard measures, the US refused to resolve the issue with India.
India may impose retaliatory tariff on US as it rejects India’s notice at WTO: Report
India may impose retaliatory tariff on US latest news: The US has rejected India’s May 9 notice at the World Trade Organization that proposed retaliatory action against the US’s steep import duties on steel and aluminium, the Hindustan Times reported.
Washington stated that the tariffs were not safeguard measures and therefore it would not hold any discussion with India on this matter, sources told Hindustan Times.
Given the circumstances, India may retaliate by suspending the concessions it has given to American imports like almonds and walnuts, the report noted.
Additionally, India could levy higher customs duties on metal imports from the US, sources told HT.
India’s notice at the WTO was against the US’s February 10 decision to impose 25% levies on all imports of steel and aluminum, effective March 12.
The situation worsened when the US decided to double the tariffs on the metals to 50% on May 30, citing national security.
India on May 9 had formally notified the WTO that it could suspend concessions and other obligations granted to the US for hiking duties on the metals to protect the US’s metal industries.
India also gave a deadline in its notice that it could take the above-mentioned action after the expiration of 30 days from the date of the notification to the WTO, which would be June 8.
Responding to India’s notice, the US on May 22 informed the WTO that India’s proposed retaliation in the notice dated May 9 was not in line with the multilateral trade rules, citing that the US’s tariffs on metals were not safeguard measures as claimed by India.
“Accordingly, there is no basis for India’s proposal to suspend concessions or other obligations under Article 8.2 of the Agreement on Safeguards with respect to these measures,” US said in its latest communication to WTO.
Citing the tariffs are not safeguard measures, the US refused to resolve the issue with India.
“The United States will not discuss the Section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure,” the American communication to the multilateral body added.
A negotiating team from the US is expected to visit India this week, sources told Hindustan Times.
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