Last week, US Commerce Secretary Ross Cautioned India against slapping retaliatory higher import duties on American goods against a Projected Strategy to Terminate the Generalised System of Preferences (GSP) to India.
New Delhi (Sputnik): A week after US Commerce Secretary Wilbur Ross warned of consequences, India has stalled that the retaliatory tariffs from 29 American products for an additional month. It is the postponement because June.
A notification in the finance ministry said that execution of increased customs duty specified imports arising from the US has already been postponed by May 16 on June 16 this year.
The Trump administration had declared the withdrawal of export incentives to Indian exporters under the GSP programme in March this year. America gave a 60-day notice that ended on 2 May but has yet to withdraw these benefits.
REUTERS / Stringer
Ross held wide ranging talks with his Indian counterpart Suresh Prabhu on 6 May at New Delhi wherein he later tried to calm Indian nerves by saying that the trade deficit will return in the near future.
US exports of goods into India increased last year by $7.4 billion, or a remarkable 29 percent, to $33 billion. Last month, Trump called India a”tariff king”, which has been countered quickly by the South Asian nation.
India had announced the greater duty on 29 American products to neutralise the impact of further import duties of 25 percent and 10 percent levied on Indian steel and aluminium respectively by the US past March, citing national security issues.
India has noticed the higher tariffs on many products. While import duty on walnuts are hiked to 120percent from 30%, obligation to chickpeas, Bengal gram (chana) and masur dal is going to be increased to 70 percent, from 30%. The levy on lentils would be increased to 40percent .