The trade war between India and the United States had slowly been escalating after the U.S. refused to exempt the country from its higher tariff rates for steel and aluminum imports.
The government had on 21 June 2018 chose to impose these duties in retaliation to the usa decision of significantly hiking customs duties on certain steel and aluminium products.
India has informed the United States about its decision to go ahead with the retaliatory duties, the sources said.
The proposed action, which comes a year after the notification for the duties was first drafted in June 2018, is in response to penal duties imposed on Indian aluminium and steel at 10 per cent and 25 per cent, respectively, by Washington last year. Being a major exporter of those items to the American market, India was hit hard by the move, losing around $240 million. The US trade deficit with India was US$24.2 billion, according to official data.More news: Were USWNT celebrations truly a bad look for the Americans?
More news: Launch of Canada's RADARSAT Constellation Mission on Wednesday - Space x
More news: Why was Cuba Gooding Jr
Recently, Washington reviewed India's eligibility for the US Generalized System of Preferences that created to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories.
India was one of the biggest beneficiaries of the GSP, allowing it to enjoy tax-free exports of up to $5.6 billion. Closing year, India retaliated against U.S. tariff hikes on aluminium and metal by elevating its have import duties on loads of items.
While import duty on walnut has been hiked to 120% from 30%, duty on chickpeas, Bengal gram (chana) and masur dal will be raised to 70%, from 30% now. The trade promotion body has suggested the affected sectors be given benefits under the Rebate of State & Central Tax Levies Scheme (RoSCTL).
The sides tried to find common ground for over a year, but the trade talks collapsed earlier in June after the United States withdrew export incentives to Indian companies under its Generalized System of Preferences (GSP) program, affecting $5.5 billion-worth of goods.
India's Commerce Minister Piyush Goyal, however, minimized the effects of the change after a Board of Trade meeting on June 7: 'It has had an impact on some sectors, some places.