India delays imposition of retaliatory tariffs on US goods

India’s decision to further delay the imposition of tariffs comes as the two countries negotiate a package to remove trade friction over a range of items

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India has delayed the implementation of higher tariffs on some goods imported from the United States to 17 December, according to a government order that put off for a third time retaliatory action against US import tariffs on steel and aluminium.

In September, India said it would raise tariffs on US goods on 2 November.

Trade differences between New Delhi and Washington increased since US President Donald Trump took office, but India’s decision to further delay the imposition of tariffs comes as the two countries negotiate a package to remove trade friction over a range of items.

With the new tariffs, the import duty on walnut would be hiked to 120% from 30% while that on chickpeas, Bengal gram (chana) and masur dal would become 70% from 30% now. Similarly, the levy on lentils will be hiked to 40% from 30%.

The two sides have sparred over a variety of issues and are in the process of resolving them part of a ‘trade package’. The key issues include the US levying higher tariffs on Indian steel and aluminium, and reviewing Indian exports’ eligibility for preferential duties. While India has demanded greater market access for its products from sectors, including agriculture, automobile, auto components and engineering, the US is sought greater market access for its farm and manufacturing products, including medical devices.

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