India is likely to impose higher duties on 29 goods imported from the US from April 1, adopting a firmer stance in relations with one of its biggest trading partners, which withdrew benefits under the Generalised System of Preferences (GSP). The decision could derail the substantive package that India and the US were working on to resolve trade issues. Higher duties have been proposed on US walnuts, chickpeas, lentils, boric acid and diagnostic reagents, among other goods, imposing an additional burden of $290 million on them. The increased levies, proposed in June 2018 after the US announced higher tariffs on certain steel and aluminium products from which India had sought exemption, have been deferred six times in view of the bilateral trade dialogue. Now, with the US terminating preferential treatment to Indian exports under GSP, India is likely to let the tariffs kick in even though it has maintained that retaliatory tariffs are a separate issue and no knee-jerk reactions are warranted.

(Economic Times)