WASHINGTON, DC - MARCH 01:  U.S. President Donald Trump participates in a meeting with leaders of the steel industry at the White House March 1, 2018 in Washington, DC. Trump announced planned tariffs on imported steel and aluminum during the meeting, with details to be released at a later date.  (Photo by Win McNamee/Getty Images)
WASHINGTON, DC - MARCH 01: U.S. President Donald Trump participates in a meeting with leaders of the steel industry at the White House March 1, 2018 in Washington, DC. Trump announced planned tariffs on imported steel and aluminum during the meeting, with details to be released at a later date. (Photo by Win McNamee/Getty Images)

India Last Year Announced Higher Import Duties on Many US Agricultural Products

India's retaliatory tariffs to hit US exports worth $900 million

India's planned corrective tariffs against US undeveloped products counting apples, almonds and lentils will have an adverse impact on American exports worth nearly $900 million, according to the latest Congressional report.

India last year announced higher import duties on many US products like apples, almonds, walnuts, chickpeas and lentils in reprisal to President Donald Trump's decision to impose heavy tariffs on imported steel and aluminum items, a move that sparked fears of a global trade war.

However, India is the only major country which has been incessantly postponing the achievement of the corrective tariffs despite announcing it more than six months ago.

In October last year, Trump described India as a "tariff king" as he reiterated his allegation that New Delhi has a high tariff rate on various American products. India's planned corrective tariffs are far less than that by China on more than 800 American agricultural products which accounted for approximately $20.6 billion in exports to the US in 2017.

 China is followed by Canada ($2.6 billion), Mexico ($2.5 billion), the European Union (EU) ($1 billion) and Turkey ($250 million) in slapping disciplinary tariffs on the agricultural products from the US.

Countries have compulsory tariffs on American agricultural products to react against actions the Trump management took in March 2018 to protect US steel and aluminum producers and in response to Chinese intellectual property rights and technology policies.

Since then, over 800 US food and undeveloped products have been subject to disciplinary tariffs from China, the EU, Turkey, Canada and Mexico, the bipartisan Congressional Research Service (CRS) said in its report 'Profiles and Effects of Retaliatory Tariffs on US Agricultural Exports'.

The CRS, and self-sufficient research wing of Congress, frequently prepares information on various issues for the lawmakers to make informed decisions. US exports of those products to the retaliating countries totaled $26.9 billion in 2017, according to the United States Department of Agriculture (USDA) export data.

It all started on March 23, 2018, when the Trump administration practical a 25 percent tariff to all US steel imports and a 10 percent tariff to all US aluminum imports, citing an examination that showed national security concerns.

"Canada, China, Mexico, the EU, and Turkey retaliated with tariffs on the import of US agricultural and food products and other goods."India has planned retaliatory tariffs on US apples, almonds, walnuts, chickpeas and lentils, but it has belated accomplishment pending ongoing negotiations with the Trump administration," said the CRS.

Reports of CRS are prepared by self-governing experts for the lawmakers to make well-versed decisions and are not an official position of the US Congress.

In its report dated December 31, the CRS said in response to the tariffs the Trump administration levied on US imports of steel and aluminum from India earlier this year, India has threatened to impose retaliatory tariffs on a handful of US agricultural and food products. The date for imposing these tariffs has been pushed back several times, and they are currently set to become effective on January 31, 2019.

"US exports of the targeted products were valued at $857 million in 2017, comprising 54 percent of the $1.8 billion of total US agricultural exports to India. US almond growers, in particular, could feel the effects of India's endangered tariffs should they enter into force," said the CRS, a copy of which was obtained by PTI.

India ranked third as a purpose for US apple exports in 2017, purchasing $97 million of US apples, or 10 percent of the total exports.

"The Indian government proposes to apply a 30 percent disciplinary tariff on imports of US apples on January 31, 2019," the CRS said. Comparatively, US apple exports to Mexico and China are now subject to additional disciplinary tariffs of 20 percent and 40 percent respectively, raising the total tariff rates to 20 percent and 50 percent respectively.

The Trump administration has taken procedures to ease the downside effects of the disciplinary tariffs on farmers and ranchers through a $12 billion trade aid package.

Under the initiative, USDA has committed to making direct payments to farmers of selected possessions subject to the tariffs, as well as buying up surplus quantities of some produce and providing funding for additional trade promotion efforts.

India's exports to the US in 2017-18 stood at $47.9 billion, while imports were $26.7 billion. The trade balance is in favor of India.

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