Included on that list are numerous fresh products, such as apples. These will have a retaliatory duty of 30%. This increase will be applied in addition to the current 50% duty. That will result in a total tariff of 80%. These tariff hikes are scheduled to enter into immediate effect by no later than 21 June.
A notification issued by India to the Council for Trade in Goods’ Committee on Safeguards states that “The suspension will come into effect earlier than 21 June 2018, in case the United States decides to continue the period of application of the measures per Article 7 of the Agreement on Safeguards. The suspension of concessions will continue to apply until the United States' safeguard measures are lifted.”
Tarun Arora from IG International, a major Indian importer, says “This is what India will do in case the US does not rule back the anti-dumping duty on steel.” This company imports as much as 7 million cartons of apples from the US on a yearly basis. “If this tariff is implemented, we could see half, or even less, the volume coming in next year”, he says.
“We will have to look at other sources. Not many countries have the volumes that the US is currently supplying. It will be tough to get the same volumes from other sources. However, Europe and countries like Chile, in the Southern Hemisphere, could benefit enormously from this”, says Tarun. He adds that Indian consumers will not be able to absorb a 30% increase. “They will substitute other products. Overall, it will be very difficult.”
However, Tarun is hopeful that the issue will be resolved soon. “We have extremely good relations with the US. I, personally, believe that both governments are mature enough to find a solution together.”