Indian trade ministry has proposed on Friday the government was suspending the implementation of retaliatory tariffs on the American goods by one month which was supposed to go into effect from April 1, according to a trade ministry spokesperson reports to Reuters.
According to Dawn news reports, trade friction between the United States and India has hiked after US President Donald Trump announced his plans to end favourable trade treatment this month for India allowing duty-free entry of its India’s export to the US worth $5.6 billion.
Indian officials believe India could lose its preferential treatment in early May. Two Indian government officials having knowledge of the development said the Indian government has asked the American administration to review India’s decision.
India has said it would be increasing import duties last year in June varying to 120 per cent from 20 per cent on a slew of the US iron, steel and farm products, in retaliation to the US’ refusal to exempt India from new aluminium and steel tariffs.
Since then, India has repeatedly extended the dates for the implementation of the higher duties on US goods.
The spokesperson said, “The Ministry of Commerce has requested the Department of Revenue to extend the deadline for the imposition of tariffs on US goods by another 30 days.”
The Indian trade ministry spokesperson has said that the government has planned to send its team of delegation to Washington DC in order to address bilateral trade issues.