NEW DELHI Dispatches) - In late-May, the Trump administration announced that it would strip India of its special trade status that exempts the Asian country from billions of dollars' worth of tariffs on imports into the U.S.
Reuters reported Friday that India was preparing to impose higher tariffs on some U.S. goods including almonds, walnuts and apples next week following Washington's withdrawal of New Delhi's key trade privileges.
"What India is doing is legal and the tariffs on U.S. goods will only lead to an impact of around $220 million," a source close to the matter said.
Following Washington's decision to strip the Asian country from trade privileges, New Delhi vowed to uphold the country's national interests by imposing retaliatory tariffs on twenty-nine items imported from the U.S.
India was the largest beneficiary of the Generalized System of Preferences (GSP) program in 2017 with $5.7 billion in imports to the U.S. given duty-free status. India's top exports to the U.S. under the GSP in 2017 included motor vehicle parts, ferroalloys, precious metal jewellery, building stone, insulated cables, leather products, garment (marginal) and wires.
President Trump has repeatedly pressured New Delhi to open its markets to U.S. trade to close the deficit, which is around $27.3 billion, and has protested the country's protectionist tariff policies, including recently re-elected Prime Minister Narendra Modi's 'Make In India' project.