Trade Cases
U.S. Challenges India's Retaliatory Tariffs at WTO
Written by Sandy Williams
July 9, 2019
The U.S. is taking issue with retaliatory tariffs imposed by India in response to the Trump administration’s Section 232 tariffs on steel and aluminum. In a request for consultation with the World Trade Organization, the U.S claims that India is violating Articles 1:1 and Article II 1(a) and (b) of GATT 1994.
India issued an order in June 2018 to raise import taxes on 20 U.S. products in retaliation to the steel and aluminum tariffs. The taxes ranged from 5 to 100 percent on products from almonds to motorcycles and were repeatedly delayed while the two governments sought to work out a trade deal.
On June 16, 2019, India expanded the product listing to 28, increased the custom duties and implemented the order on approximately $1.4 billion in goods. The trade measure followed a move on June 5 by the United States to halt trade privileges for India under the Generalized System of Preferences. The loss of GSP will impact New Delhi’s $5.6 billion of duty-free exports per year.
In its complaint to the WTO, the U.S. wrote: “India does not impose the additional duties measure on like products originating in the territory of any other WTO member. India also appears to be applying rates of duty to U.S. imports greater than the rates of duty set out in India’s schedule of concessions.”
Tweeting that “this is unacceptable and the tariffs must be withdrawn!” President Trump said he looked forward to discussing the matter with India’s prime minister at last week’s G-20 meetings. Those talks on the sideline failed to bring much relief to the increased tension between the United States and India. The two leaders discussed four issues: Iran, 5G, bilateral relations and defense relations.
U.S. Secretary of State Mike Pompeo, in a press conference last week with India Minister of External Affairs Subrahmanyam Jaishankar, said reinstating India to the GSP didn’t come up during discussions. “We didn’t discuss the lifting of that, but we agreed we would work through that problem,” said Pompeo. “We’re going to do our best to make sure that all the right people get in all the right places and work through these problems so that we can get on with the business of growing.”
On Tuesday, Trump reiterated his stance on India in another tweet: “India has long had a field day putting tariffs on American products. No longer acceptable!”
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.
Commerce tags UAE with ‘critical circumstances’ in CORE trade case, South Africa spared
The Commerce Department has made a preliminary determination that ‘critical circumstances’ exist for certain imports of corrosion-resistant (CORE) flat-rolled steel from the United Arab Emirates (UAE). Commerce decided that critical circumstances did not apply to CORE from South Africa. The department also found that critical circumstances did not apply to CORE from UAE producers Al-Ghurair Iron & Steel LLC and United Iron & Steel Company LLC.
Trump’s ‘Liberation Day’ brings 10% baseline tariffs; steel, aluminum, and autos/parts excluded
President Trump’s promised “Liberation Day” has arrived, with a 10% minimum tariff on imports. But there are some very important exceptions: The United States’ USMCA partners, Canada and Mexico, are excluded from the reciprocal tariffs for now. In addition, steel, aluminum, as well as autos and auto parts are excluded from the reciprocal tariffs. That’s […]
Price on Trade: Auto tariffs, auto parts, and Hyundai – a world of rapid changes
Trump's new auto tariffs will apply to passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (including engines and engine parts, transmissions and powertrain parts, and electrical components).
CRU: Canacero urges Mexico-US partnership to fend off Asian steel imports
Victor Cairo, head of Mexico’s steel sector body Canacero and CEO of ArcelorMittal Mexico, says he is confident negotiations between the Mexican and US governments planned for April 2 will lead to the creation of a regional block to substitute imports, especially from Asia.