India hopeful of resolving tariff issue with US at the earliest

India is hopeful of resolving the issue of tariffs on steel and aluminium with the US soon and both sides are engaged in finalising a trade package, official sources said Wednesday.

They said both sides have managed to narrow down their differences on a number of contentious issues relating to tariff and India was keen on arriving at an amicable solution at the earliest.

"The contours of the trade package are still under discussions. We are hopeful of an early resolution of the issues," said a top government source.

India has extended the deadline till November 2 for the imposition of higher customs duties on 29 products, including almond, walnut and pulses, imported from the US.

In June, India decided to impose retaliatory tariffs from August 4. But it was extended by another 45 days till September 18.

In a notification last night, the department of revenue said that now the duties would come effect from November 2.

The duty hike move by India was in retaliation to US President Donald Trump's March 9 decision to impose heavy tariffs on imported steel and aluminium items, a move that has sparked fears of a global trade war.

"We have extended the deadline for imposition of matching duties on steel and aluminium. Discussions are underway and the next round will be held fairly soon. There is narrowing of differences in certain areas. Progress is fairly good on individual issues," the source said.

India's exports to the US in 2017-18 stood at USD 47.9 billion, while imports were USD 26.7 billion. The trade balance is in favour of India.