The India government has decided to increase tariffs on 30 US products. The decision comes after the US imposed tariffs on steel and aluminium imported from India. Shweta Bajaj reports.

Indicating rising trade tensions between New Delhi and Washington, the Indian government has written to the World Trade Organisation (WTO) notifying its decision to increase import tariffs on 30 items from the U.S. amounting to $240 million. This is seen as a retaliation against tariffs imposed by the latter on aluminium and steel imports.

The move is significant as it comes a day after Commerce Minister Suresh Prabhu returned from the U.S. and just weeks ahead of further talks between the two countries on the issue.

"India hereby reiterates its decision to suspend concessions or other obligations notified to the Council for Trade in Goods on 18 May 2018 that are substantially equivalent to the amount of trade affected by the measures imposed by the United States," said an official communique of the Indian government the WTO's Council for Trade in Goods.

In March this year, U.S. President signed an order imposing a 25% tariff on steel imports and a 10% tariff on aluminium imports, citing national security as one of the key reasons behind the move. The Indian government asked an exemption from these tariffs as India did not pose a security threat to the U.S. India also took the U.S. to the dispute settlement mechanism in the WTO over the matter.

From Indian side this move is applicable items such as chickpeas, lentils, almonds, apples and some metal products. According to Indian government it would result in a duty collection of $240 million dollars.