India likely to postpone raising tariffs on U.S. goods

Reuters  |  NEW DELHI 

By Kumar

In June, New Delhi, incensed by Washington's refusal to exempt it from these new tariffs, announced it would raise import tax on some U.S. products including almonds, walnuts and apples.

An Indian said the government proposed to put the new tariffs, which were due to go into effect on Aug. 4, on hold.

Trade differences between and the have been rising since Trump took office. Bilateral trade rose to $115 billion in 2016, but the wants to reduce its $31 billion deficit with India, and is pressing New to ease trade barriers.

"The has suggested to the department of revenue to amend the notification for further extension of retaliatory measures for 45 days," Monideepa Mukherjee, for the and Industry, told

bought more than half all U.S. almond shipments in 2017 and a U.S. trade body had said New Delhi's plan to impose higher duties was a matter of concern.

India has proposed to buy from the U.S. to help narrow the trade deficit. The has also emerged as a top arms supplier to India and U.S. companies are bidding for military aircraft deals worth billions of dollars.

(Additional reporting by Nidhi Verma; Editing by Nick Macfie)

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First Published: Thu, August 02 2018. 19:26 IST