Govt sources refute Trump's claim, says India's tariffs are not that high

India's tariffs are not that high compared to other developing countries, government sources told Reuters on Thursday, reacting to United States President Donald Trump's call to withdraw what he said were very high tariffs.

Earlier Trump tweeted that he looked forward to meeting Indian Prime Minister Narendra Modi at the G20 summit in Japan, but said that for years India had put "very high tariffs against the United States". Adding: "This is unacceptable and the tariffs must be withdrawn!"

This month, India slapped higher tariffs on 28 US products in retaliation for Washington's withdrawal this month of tariff-free trade for certain Indian goods.

India's tariffs are in line with the World Trade Organization rules, the government sources said, adding that US tariffs on some items were much higher than India's.

India's response came after the US President Donald Trump on Thursday asked India to withdraw retaliatory tariffs that New Delhi imposed this month, calling the duties "unacceptable".

"I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high tariffs against the United States, just recently increased the tariffs even further," Trump said on Twitter. "This is unacceptable and the tariffs must be withdrawn!" said Trump, who will meet Modi at this week's G20 summit in Japan.

Trump's remarks could further worsen a trade row that has led to tit-for-tat tariffs from India and the United States and created an unease over the depth of their security alliance.
 

US Secretary of State Mike Pompeo, who was in New Delhi on Wednesday, sought to reduce heightened trade tension with India, promising a renewed focus on negotiating better ties, but giving few specifics of how they would overcome disputes over trade and investment.

Trade between the United States and India stood at about $142.1 billion in 2018.