India and the United States may withdraw contentious tariffs that were imposed in the backdrop of an ongoing trade war.

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The US may be willing to exempt India from tariffs on steel and aluminium and if that happens, the country will withdraw the notification imposing additional duties on 29 US products, that was to be effective from August 4. government sources said.

The development comes after three-day long talks between Indian and US trade diplomats in Delhi.

Both sides will meet again in mid July at Washington, D.C. to take forward the parleys that happened in Delhi, sources added.

"The idea is to have a mutually agreed package on trade issues," the source added.

If a deal is clinched in the US capital, then Commerce Minister Suresh Prabhu and USTR Robert Lighthizer may meet to announce the mutually agreed trade package.

If that happens, it will be the first time that US would have declared truce with a country with which it engaged in trade war.

Currently the US is engaged in a biter battle on tariffs related to goods that are being traded with China, EU, Russia , Canada and Japan.

Most of the discussions in the three day talks focused on market access and for its part, India sought easier norms and tariffs for its auto, automobile spare parts, farm and food products.

India also pressed for continuation of benefits under the Generalised System of Preferences (GSP) scheme of the US government that allows low duty imports from third world countries.

Indian trade diplomats assured their US counterparts that the country will be buying more oil, natural gas and aircraft from US.