Never miss a story

Get subscribed to our newsletter


×
FILE - Containers are piled up at a terminal at the Jawaharlal Nehru Port Trust in Mumbai, India, June 29, 2017. India’s commerce ministry says it will not try to hold onto its preferential zero-tariffs status with the United States. VOA

India has hiked tariffs on 28 goods imported from the United States as a trade spat between the two countries intensifies. The retaliatory move came days after Washington removed New Delhi from a list of countries that have preferential access to its market.

“India has put its cards on the table,” says trade expert Biswajit Dhar at Jawaharlal Nehru University in New Delhi. “The U.S. has upped the ante and it is also threatening to take further action. This required India to respond.”


The trade spat has escalated ahead of a visit later this month to New Delhi by U.S. Secretary of State Mike Pompeo who has pushed India to allow American companies more access to its markets and to lower barriers.


FILE – A female laborer winnows almonds inside a small-scale factory unit in New Delhi, Jan. 15, 2011. India is by far the largest buyer of U.S. almonds. VOA

Experts fear the growing tensions could cast a shadow over a deepening India-U.S. strategic partnership that aims at countering China’s growing influence.

The American goods that attract higher tariffs beginning Sunday include almonds, apples, walnuts, chickpeas and lentils, as well as some stainless steel products. New Delhi is the largest importer of U.S. almonds and the second largest buyer of apples. The total impact of the Indian tariffs is estimated to be about $240 million.

Increase deferred several times

The hike in duties by New Delhi was announced a year ago in retaliation for Washington’s imposition of higher tariffs on imported steel and aluminum, but deferred several times as both sides held talks to bridge their differences.

But India went ahead after the U.S. earlier this month imposed another punitive measure: removing New Delhi from a trade program to aid the economies of developing countries. Washington said the preferential status was revoked because India has failed to provide adequate access to its markets for U.S. firms. It will impact Indian imports worth $5.6 billion. New Delhi was the largest beneficiary of the Generalized Systems of Preferences program. India’s commerce ministry has called the decision unfortunate.


A shop in New Delhi sells almonds and walnuts, which are among the 29 U.S. products on which India has announced retaliatory tariffs starting August 4. India is the largest market for U.S. almonds. (A. Pasricha/VOA)

US markets

U.S. President Donald Trump has repeatedly named India as one of the countries that follow trade practices unfair to the United States. Washington wants New Delhi to address a trade imbalance, the $142 billion bilateral trade is skewed in New Delhi’s favor by about $30 billion.

Dhar says among the sticking points are the demands by Washington that India lower tariffs on dairy and poultry to encourage U.S. agricultural imports. But these are areas where New Delhi faces domestic challenges.

“India is battling with this very large population of small and marginal farmers. It is very difficult for India to drop tariffs specially as we know U.S. agricultural products are being subsidized,” according to Dhar.


U.S. Secretary of State Mike Pompeo addresses the India Ideas Summit in Washington, June 12, 2019. VOA

The United States is also concerned about recent rules that it says adversely impact the operations of its e-commerce companies such as Amazon and Walmart in India. Even though the moves by New Delhi and Washington signal that each is taking a tougher stand, they could also push both sides to more serious negotiations to resolve their differences.

ALSO READ: Trump Announces Migration Deal with Mexico, Averting Threatened Tariffs

“We remain open to dialogue and hope that our friends in India will drop their trade barriers and trust in the competitiveness of their own companies, their own businesses, their own people,” Pompeo said at policy speech at the U.S. India Business Council in Washington on Thursday. He said that countries that have provided American companies access to their markets have seen “real opportunity.”

Pompeo will in New Delhi on June 25-26 to hold talks with his Indian counterpart. Indian Prime Minister Narendra Modi and U.S. President Trump are also expected to meet on the sidelines of the G-20 summit in Japan later this month. (VOA)


Popular

Unsplash

Robots evolve to do more work around us

As robots evolve to do more work around us, the UK-based humanoid robot manufacturer Engineered Arts has infused more human-like facial expressions into one of its robots, which may leave you with an eerie feeling.

In a video posted on YouTube, the robot called 'Ameca' displays various human expressions, like appearing to "wake up" from sleep, as its face shows confusion and frustration when it opens its eyes.

Follow NewsGram on Twitter to stay updated about the World news.

Keep Reading Show less
Unsplash

The Microsoft office

Microsoft has disrupted the activities of a China-based hacking group, gaining control of the malicious websites the group used to attack organisations in the US and 28 other countries around the world.

The Microsoft Digital Crimes Unit (DCU) said in a statement that a federal court in Virginia granted its request to seize websites of the hacking group called 'Nickel', enabling the company to cut off Nickel's access to its victims and prevent the websites from being used to execute attacks.

Keep Reading Show less
Unsplash

MediaTek's plans to boost technology democratisation and enable access to disruptive connectivity

Chip manufacturer MediaTek on Monday announced that it is focused on making 2022 a year aimed at rapid growth, business success, substantial expansion in Research and Development capabilities.

MediaTek's plans to boost technology democratisation and enable access to disruptive connectivity with its range of mainstream to flagship 5G chips.

"We at MediaTek are focused on making 2022 a year aimed at rapid growth, business success, and substantial expansion in our R&D capabilities. For 2022, we are focused on further strengthening our presence in India, offering incredible experiences to customers, and supporting the country's technology initiatives with our expertise and collaboration with leading OEMs," Anku Jain, Managing Director, MediaTek India said in a statement.

Follow NewsGram on LinkedIn to know what's happening around the world.

In the flagship segment, MediaTek recently announced the Dimensity 9000 chip, which is a milestone of innovation and a rise to the incredible, built-to-power flagship 5G smartphones in the world, the company claims.

MediaTek Dimensity 9000 features a single Cortex-X2 performance core clocked at 3.05GHz, three Cortex-A710 cores at 2.85GHz and four Cortex-A510 efficiency cores at 1.8GHz.

It packs a 10-core Arm Mali-G710 that takes care of graphics processing, the report said.

Keep reading... Show less