Harley Davidson and the likes has been excluded in the list of American products that India is planning to impose tariffs on.
Apples, walnuts and some chemical and metal products are among the American products that India wants to impose retaliatory tariffs on, the Indian government confirmed this week. The tariffs will take effect on August 4.
However, the announcement did not have any mention about the large US motorcycle brands such as Harley-Davidson which was not the case when the Indian government filed a complaint with the World Trade Organization last week which listed the tariffs that it wants ot impose on American products worth about $241 million.
Local sources in India have confirmed that the big motorbike companies have been excluded from the list following directions from the Indian commerce ministry. The government confirmed tariffs on 29 other American products that it has sent to the WTO.
According to US government data, American goods worth about $42 billion was sold India in 2016. On the other hand, Indian goods worth about $72 billion was exported to the US in the same period.
India has been repeatedly attacked by US President Donald Trump against the imposition of high tariffs on the import of big bikes and has claimed that those tariffs negatively impacted the likes of Harley Davidson. However, it is unclear whether Harley pays those tariffs.
There was no mention about the total worth of tariffs minus the motorcycles in the Indian government announcement. There was no response from the officials at India’s commerce ministry to media requests for further details.
Diplomatic sources have told the media that next week, trade officials from both the US and India would be meeting to discuss the trade issues between the two countries.
India is one of several major trading partners that the United States has clashed with in recent weeks.
The import tariffs worth $3.2 billion of US products imposed by the European Union took effect from Friday this week. While earlier in June, import tariffs was imposed on US products worth $3 billion by Mexico, July 1 is the date when import tariff on US goods worth $13 billion would come into effect in Canada.
Further, import tariffs on US goods worth $267 million would also be imposed on Turkey, the country has announced.
At the same time, two of the largest economies of the world, US and China are almost on eth verge of a full-blown trade war. Earlier this week, US president Donald Trump issued another threat where he talked about imposing fresh import tariffs on Chinese goods worth about $200 billion if China retaliated with any tariffs against Trump’s earlier decision to impose tariffs on $50 billion worth of Chinese products. The earlier tariffs announced by the US on Chinese products is set to be implemented from July 6. China has said it will retaliate with tariffs on $50 billion worth of US goods.
(Adapted from Money.CNN.com)