India Joins the Tariff War: The Party is Just Starting!
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
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?
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Mike "Mish" Shedlock