A week after resorting to the World Trade Organization in its complaint against US tariffs on Russian steel and aluminum, Moscow has raised its duties from 25 to 40 per cent on some US imports.
According to the Russian news agency TASS, Economic Development Minister Maksim Oreshkin said the rise was to compensate for more than $500 million loss in exports expected due to the US tariffs.
“Currently our higher duties cover only part of the damage – $87.6 million. This is the compensation Russia has the right to under WTO rules,” Oreshkin said in remarks carried by TASS.
The $87.6 million figure refers to the amount of tariffs Russia can resort to without having to turn to a WTO ruling.
The 40 per cent tariff will apply to road construction equipment, drilling equipment and other hi-tech machines.
Russia last week joined other BRICS members China and India in resorting to the WTO about the US tariffs.
China’s officials have warned that a trade war benefits no one and leaves no winners.
India is expected to slap tariffs on 29 US products beginning August 4. It had already resorted to the WTO in May and last week announced it would join Norway in requesting third party dispute consultation.
In its May complaint, India accused the US of violating WTO guidelines multiple times including the 1994 General Agreement on Tariffs and Trade (GATT) and the Agreement on Safeguards.
The BRICS Post with inputs from Agencies