The Indian government has deferred by a month retaliatory tariff measures against the US that were to take effect from April 1, a senior government official said on Tuesday, April 2.
The official said that the decision to defer the retaliatory tariff measures was taken after submissions made by India’s Ministry of Commerce as India is still in talks with the US administration to resolve issues “without escalating retaliatory trade measures”.
The Indian government had proposed increasing tariffs in the range of 20-120 percent on imports of 29 products from the US like iron and steel, farm products and medical devices, in retaliation for the US imposing higher tariffs on Indian exports of steel and aluminum products, the official said.
Subsequently, the US government withdrew benefits under the Generalized System of Preferences (GSP) for duty free entry of exports from India up to goods worth $5.6 billion and the withdrawal of benefits was to become effective from May 1, 2019.
According to government officials, Indian Ministry of Commerce officials have been in talks with US trade officials seeking an review of its decision to withdraw GSP benefits and hence had recommended that India should defer imposition of higher tariffs on US exports while current talks are ongoing.