India extends retaliatory tariff deadline on US products

  1. Indian government has extended its deadline to impose retaliatory import duties on 29 US products till May 16,2019.
  2. These deadlines were extended several times since June 2018 when India decided to impose these duties in retaliation to a move by the US to impose high customs duties on certain steel and aluminium products.
  3. Further,this extension comes in the backdrop of the US decision to withdraw export incentives being provided to Indian exporters under Generalised System of Preferences(GSP) programme.
  4. However,India may go ahead with its decision to impose retaliatory tariffs if the US would withdraw the GSP benefits.GSP is a preferential tariff system extended by developed countries to developing countries which allows zero tariff imports from developing countries.
  5. India’s exports to the US in 2017-18 stood at $47.9 billion while imports were at $26.7 billion.The trade balance is in favour of India.

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