India slaps retaliatory tariffs on United States

 Some U.S. exports leaving the Port of Los Angeles and heading to India are expected to face added tariffs when they arrive at ports in India. The additional tariffs are scheduled to kick in on June 21. (Parimal M. Rohit photo)

Some U.S. exports leaving the Port of Los Angeles and heading to India are expected to face added tariffs when they arrive at ports in India. The additional tariffs are scheduled to kick in on June 21. (Parimal M. Rohit photo)

NEW DELHI -- It's becoming harder and harder to be a friend of the United States, as another one of the country's traditional allies imposed retaliatory tariffs an the world's third-most populous nation.
    India will impose export tariffs on 30 U.S. items, according to news reports and a filing with the World Trade Organization, or WTO.
    The retaliatory tariffs will reportedly go into effect on June 21. Additional retaliatory tariffs could be imposed at a later date, according to WTO filings and news reports.
    The world's second-most populous nation had already filed a dispute with the WTO, challenging the United States' duties on aluminum and steel. The formal complaint alleged tariffs imposed by U.S. Pres. Donald J. Trump and his administration were inconsistent with WTO's policies, such as the General Agreement on Tariffs and Trade (GATT) and Agreement of Safeguards.
    Trump and the United States imposed additional import tariffs of 25 and 10 percent on steel and aluminum products on March 23.
    "The measures at issue, operating independently and/or together, appear to be inconsistent with the United States' obligations under [GATT and the Agreement of Safeguards]," India's formal WTO complaint, which was filed on May 18, stated. "These inconsistencies appear to nullify or impair the benefits accruing to India under [WTO provisions]."
    New Delhi submitted a second filing with the WTO on June 14.
    A CNN report stated India's tariffs would be appled to almonds, apples, chemical products, metal products, large motorcycles and walnuts, among other goods coming out of the United States.
    India joins the likes of Canada, European Union and Mexico in imposing retaliatory tariffs on the United States.
    Trump, according to a policy position issued on May 29, stated the United States has been on the losing end of what he called unfair trade practices. China was among the countries Trump pointed his finger at in defending his tariff policy decision.
    "For many years, China has pursued industrial policies and unfair trade practices—including dumping, discriminatory non-tariff barriers, forced technology transfer, over capacity, and industrial subsidies—that champion Chinese firms and make it impossible for many United States firms to compete on a level playing field," Trump's policy position stated.
    "China’s industrial policies, such as its 'Made in China 2025' plan, harm companies in the United States and around the world," the policy position continued.
    The Trump policy position added China, on average, imposes export tariffs at a rate three times than what the United States assesses in return. He added U.S. agricultural goods, such as poultry, are banned in China.
    Peter Navarro, Trump's Assistant to the President for Trade and Manufacturing Policy, added the trade practices of countries belonging to the Group of 7, or G7, have contributed to the United States' annual global trade deficit in goods and services. The trade deficit, Navarro stated in a position statement, was more than $500 billion.
    Japan was one of the target's in Navarro's position statement.
    "America’s trade deficit in goods with Japan is higher than with Germany: $70 billion in 2017," Navarro stated in his op-ed. which appeared in the New York Times on June 8. "For every one car America exports to Japan, Japan sends us over 100. High non-tariff barriers, including a complex regulatory system, make it difficult to sell American cars in Japan. Meanwhile, Japan slaps tariffs on a wide range of American agricultural products — as much as 32 percent on oranges, 50 percent on beef, 40 percent on various cheeses and 58 percent on wine."
    The U.S.'s trade deficit with India, meanwhile, is at $30.8 million, according to news reports.
    Check in with AH1 News for regular updates on this issue and how the tariff war could affect the Asian economy.