India joins trade war.
The US and China traded the first 5 strikes, with the 5th strike still playing out.
Mexico copped the 6th, but quickly went to the mattresses to discuss tightening up migration controls with the US. Mexican tariffs were then suspended indefinitely.
Now it’s India’s turn.
India - struck off by strike 7.
India is the 8th largest trading partner of the US.
on June 5th, the US terminated India’s designation as a beneficiary developing country under the preferential trade program, known as the Generalized System of Preferences. The GSP provides easy access to the US, and lowers US duties on developing country exports. At the same time, Turkey was also terminated from the trade program.
In India’s case, US tariffs will now apply to "large residence" washing machines, solar cells and panels and other items - some US$5.6 billion of goods.
In retaliation, India has placed tariffs on 28 imported US products, starting last Sunday.
One of these is walnuts where import duty has been raised from 30% to 120%. Duty on chickpeas, Bengal gram and masur dal increases from 30% to 70%, from 5 June.
Total value is unclear, although India has a small trade surplus with the US.
Pompeo and Japan.
US Secretary of State, Mike Pompeo is likely to be a busy man in Japan at the end of the month when the G20 meet. However, it is clear that he is a tariff evangelist, and chances are he may go on the offensive.
In 3 weeks, it will be 1 year since the US imposed Aluminium and Steel tariffs.
NextLevelCorporate is a leading strategic corporate advisory firm with a multi-decade track record which speaks for itself. We inject independent and conflict-free Senior Advisor experience and expertise directly into private and public M&A, debt and equity transactions/strategies.