Monday, 28 November, 2022
HomeEconomyIndia defers retaliatory tariffs on US imports keeping door open for agreement

India defers retaliatory tariffs on US imports keeping door open for agreement

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The move comes as an opportunity for an agreement to avert a trade war between the two nations.

India deferred the imposition of retaliatory tariffs on some US imports to next month, opening the door to an agreement that would avert a trade war between the two nations.

The higher import duty on goods like chickpeas and Bengal gram, or chana, has been delayed to 18 Sept from 4 Aug, the finance ministry said in a notification. The two sides have held meetings to relieve the tension in trade relations after Washington slapped higher levies on products shipped from the South Asian nation.

The move comes as trade tensions between the US and China intensifies. The Trump administration is considering increasing its proposed tariffs on $200 billion of Chinese goods, while Beijing has threatened to retaliate.

India’s list also included tariffs on walnuts, almonds, boric acid, apples, diagnostic reagents and some hot-rolled coil products. The nation’s position is that Trump’s 25 per cent and 10 per cent duties on steel and aluminum, respectively, violate the global trading rules and have hurt its exports.

India had a trade surplus of $25 billion with the US in 2017, according to data compiled by Bloomberg. The US cited this as one of the reasons for naming India a potential currency manipulator. – Bloomberg

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