News of the additional levy on Indian imports has earned mixed reactions from Washington trade groups and businesses.

New Delhi has put on hold its plans to procure new U.S. weapons and aircraft, according to three Indian officials familiar with the matter, in India's first concrete sign of discontent after tariffs imposed on its exports by President Donald Trump dragged ties to their lowest level in decades.

India, which now faces among the highest tariff rates imposed by the US, called the levy "unjustified and unreasonable".