India puts on hold retaliatory tariffs on US imports till Nov 2

Trade gaps have widened between two countries after President Donald Trump took office.

India has again deferred imposition of higher tariffs on some goods imported from the United States till November 2, a Reuters report said, specifying a government order.
 
This happens to be second time when the government has put on hold retaliatory action against steel and aluminium.
 
Trade gaps have widened between two countries after President Donald Trump took office.
 
However, both countries are working on a package to remove frictions over a range of items, which led India to further delay the decision.
 
After US government imposed higher tariffs on Indian items, the Indian government decided in June to raise the import tax from August 4 on some US products. The decision was delayed till September 18, pending negotiations.
 
Meanwhile, US President Donald Trump announced, on Monday, to impose 10 per cent tariffs on $200 billion worth of Chinese imports.
 
According to a report by CNBC, Trump has said that the tariffs would rise to 25 per cent on 01 January 2019. He warned that "if China takes retaliatory action against our farmers or other industries, it will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.
 
The US has already imposed higher tariffs on $50 billion worth of Chinese products. Then China, in a retaliatory measure, targetted $50 billion on American goods.
 
With this latest action, trade conflict between the world's two largest economies is bound to grow. China has already threatened to retaliate against new duties.
 
Source: Reuters & CNBC

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