India Joins the Tariff War: The Party is Just Starting!

In response to Trump's tariffs on steel, India will put tariffs on Harley motorcycles, lentils, and almonds.

Following the well-established belief that "trade wars are easy to win", India counters Trump tariffs, to hike duty on US bikes, almonds, apples.

India has proposed to raise import duty on 30 products, ranging from motorcycles and certain iron and steel goods to boric acid and lentils. The customs duty on some of the items may be raised up to 50 per cent, in a signal that New Delhi will hit back at America's protectionist policies that range from a tighter visa regime to higher import duties.

The additional duty proposed to be hiked on these items ranges from 10 per cent to 50 per cent. Those at the lowest include almonds, walnuts and fresh apples - which will cost a little more for consumers as an additional duty of 10 percent is proposed to be imposed.

But the real impact will be on products such as motorcycles over 800 cc - a move targeted at Harley-Davidson - where an additional duty of 50 percent has been proposed. This is seen as a real counter to President Donald Trump who had demanded a reduction in tariff on the cult bike brand.

The government threatened further action. "India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the US," it added.

Let It All Hang Out

‚Äč

Party Just Starting

It's so easy when it's all easy. As Trump says "Trade Wars are Good and Easy to Win"

The party is just starting. Who's next?

Related Articles

  1. Stupid is As Stupid Does: Trump Hits China With $200 Billion More Tariffs
  2. Des Moines Register: "China Tariffs Could Cost Iowa Farmers Up to $624 million"

Mike "Mish" Shedlock

Comments (10)
No. 1-10
pi314
pi314

So what is the current size of trade between USA and India?

Mike Mish Shedlock
Mike Mish Shedlock

Editor

It's supply chains that matter - not amounts. That said. India supplies little. India is currently our 9th largest goods trading partner with $67.7 billion in total (two way) goods trade during 2016.

Mike Mish Shedlock
Mike Mish Shedlock

Editor

Addendum

I received an Email from Don Boudreaux on the broken link. He fixed it.

The link points to Libertarians & Immigration.

Inquiring minds may wish to give it a look.

Mike "Mish" Shedlock

Stuki
Stuki

Nothing promotes future growth opportunities for US companies, like inducing a country with a rapidly growing, massive, population and middle/consuming class, to look for alternatives to US products in their early, formative years. An entire US population worth of new consumers coming online in a generation or so, who will arrange their lives around non-US products instead...

Guinny_Ire
Guinny_Ire

fyi your internet page is spotty. Sometimes it won't load, or keeps trying to load. It's getting difficult to follow your posts