India defers retaliatory tariffs on US goods yet again till November 3

India for the third time has reportedly deferred the tit-for-tat tariffs against 29 American products worth US$ 235 million. The tariff was supposed to come into force today, September 18, as a response to the Trump administration for raising import duties on Indian aluminium and steel products.

According to a report in Mint, this decision to postpone the retaliatory hikes till 3rd of November is taken since the two countries are attempting to find a solution.

The United States had imposed 25 per cent duty on certain steel products and 10 per cent on aluminium products, which would help the US government collect US$ 241 million in import duty.

In response, India announced even higher tariffs on the imports of 29 products from the US, including almonds, apples, and phosphoric acid worth US$ 10.6 billion in total.

New Delhi, however, did not impose the tariffs immediately but left a door open for bilateral negotiations to ease trade tensions. Initially, the duty hike was supposed to come into force on August 4 but got deferred by 45 days until September 18.

India and the US have been working together since long to strengthen ties in bilateral defence and strategic relationship. New Delhi, which has been in talks for a trade package with the US, has been demanding a waiver on tariff hikes similar to the ones granted to Argentina, Brazil and South Korea.

Washington had offered a release to India from aluminium and steel tariffs but the latter declined since the deal was in exchange for capping aluminium and steel products exports by 70 per cent of the total volume exported to the US from India last year.

India had also dragged the US to the World Trade Organisation’s (WTO) dispute settlement mechanism over the imposition of import duties on steel and aluminium.