India, top buyer of US almonds, hits back with higher duties

Move comes after its request for tariff exemption was ignored

NEW DELHI: India, the world's biggest buyer of US almonds, raised import duties on the commodity by 20%, a government order said, joining the European Union and China in retaliating against President Donald Trump's tariff hikes on steel and aluminium.

New Delhi, incensed by Washington's refusal to exempt it from the new tariffs, also imposed a 120% duty on the import of walnuts in the strongest action yet against the United States. The move to increase tariffs from August 4 will also cover a slew of other farm, steel and iron products. It came a day after the European Union said it would begin charging 25% import duties on a range of US products on Friday, in response to the new US tariffs.

India is by far the largest buyer of US almonds, purchasing over half of all US almond shipments in 2017. A kilogram of shelled almonds will attract duty of as much as Rs120 ($1.76) instead of the current Rs100, the Commerce Ministry said.



Last month, New Delhi sought an exemption from the new US tariffs, saying its steel and aluminium exports were small in relation to other suppliers. But its request was ignored, prompting India to launch a complaint against the United States at the World Trade Organization.

"India's tariff retaliation is within the discipline of trade tariffs of the World Trade Organization," said steel secretary Aruna Sharma. Trade differences between India and the United States have been rising since US President Donald Trump took office.

Bilateral trade rose to $115 billion in 2016, but the Trump administration wants to reduce its $31 billion deficit with India, and is pressing New Delhi to ease trade barriers. Earlier this year, Trump called out India for its duties on Harley-Davidson motorbikes, and Prime Minister Narendra Modi agreed to cut the import duty to 50% from 75% for high-end bikes.

But that has not satisfied Trump, who pointed to zero duties for Indian bikes sold in the United States and said he would push for a "reciprocal tax" against countries, including US allies, that levy tariffs on American products.

In the tariff rates issued late on Wednesday, the commerce ministry named some varieties of almonds, apples, chickpeas, lentils, walnuts and artemia that would carry higher import taxes.