USTR proposes retaliatory tariffs against Indian goods over 2% digital tax

This follows investigation by the office of the US Trade Representative (USTR) last year under section 301 of the Trade Act, which concluded that India's equalisation levy, was "actionable"

In retaliation to India’s digital tax (2 per cent) on foreign technology majors, the United States has proposed additional tariffs on a slew of Indian imports including basmati rice, sea food, jewellery, bamboo, semi-precious stones and pearls, among others.

A tariff of up to 25 per cent ad valorem on aggregate level of trade has been proposed, with an aim to mop up around $55 million, which is as much as what India will collect from US companies through the 2 per cent equalization levy. This follows investigation by the office of the US Trade Representative (USTR) last year under