India has delayed the implementation of higher tariffs on some goods imported from the United States to Nov. 2, according to a government order that put off for a second time retaliatory action against U.S. import tariffs on steel and aluminium.
Trade differences between India and the United States have risen since President Donald Trump took office, but India's decision to further delay comes as the two countries negotiate a package to remove trade frictions over a range of items.
Angered by Washington's refusal to exempt it from new steel and aluminium tariffs, New Delhi decided in June to raise the import tax from August 4 on some U.S. products, including almonds, walnuts and apples. The Indian government later delayed imposing the tax until Sept 18, but with negotiations ongoing, it has decided to postpone again.
Earlier this month India and the United States signed an accord on secure military communication. The agreement had been stalled for years because of India's concerns that it would open up its communications network to the U.S. military.
Separately, Trump escalated his trade war with China on Monday, imposing 10 per cent tariffs on about $200 billion worth of Chinese imports.