India foot-drags as trade war rages

As the U.S-China trade war spreads, India
has delayed the implementation of higher tariffs on some goods imported
from the United States to Nov. 2.

 

The government ordered the 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.

 

The products included 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.