Fed up with India’s high tariffs, Donald Trump says he plans to end its preferential trade treatment
- The US president, who has vowed to reduce trade deficits, has repeatedly called out India for its high tariffs
- The US goods and services trade deficit with India was US$27.3 billion in 2017, according to official figures
Commerce Secretary Anup Wadhawan said the withdrawal of the Generalised System of Preferences (GSP) for Indian products would have limited impact. The two countries had been working on a trade package to address each other’s concerns, he said.
Under the GSP programme, India exports US$5.6 billion worth of goods to the US duty free.
Trump, who has vowed to reduce US trade deficits, has repeatedly called out India for its high tariffs.
“After intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India,” Trump said in a letter to congressional leaders.
The US Trade Representative’s Office (USTR) said removing India from the GSP programme would not take effect for at least 60 days after notifications to Congress and the Indian government, and it will be enacted by a presidential proclamation.
