GSTnews item12 May 2019
India’s import tariff very low, not so for US, China
News Update
India’s import tariff very low, not so for US, China
US President Donald Trump may call India the “tariff king”, but data show New Delhi has exercised “maximum self-restraint” in taxing imports. While India’s average bound rate — or the maximum duty it is allowed to charge under the World Trade Organization (WTO) framework — is as much as 48.5%, its actual applied tariff is as low as 13.8%, according to the WTO data. On a trade-weightage basis, the tariff is even lower — just 7.5%. In contrast, China’s applied tariff of 9.8% is almost as high as its permissible limit (bound rate) of 10%, while South Korea’s is 13.7% against 16.5%. Importantly, at an average of 3.4%, the actual US tariff is as much as it is allowed to slap.
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