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US President Donald Trump said he intends to end India’s preferential trade treatment under a program that allows $5.6 billion worth of Indian exports to enter the United States duty free.<\/p>\n
“I am providing notice of my intent to terminate the designation of India as a beneficiary developing country under the Generalized System of Preferences (GSP) program,” Trump said in a letter to congressional leaders.<\/p>\n
“I am taking this step because, 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\u00c2\u00a0will provide equitable and reasonable access to the markets of India,” Trump said.<\/p>\n
Trump, who has vowed to reduce U.S. trade deficits, has repeatedly called out India for its high tariffs.<\/p>\n
The U.S. goods and services trade deficit with India was $27.3 billion in 2017, according to the U.S. Trade Representative’s Office.<\/p>\n
India is the world’s largest beneficiary of the GSP program and ending its participation would be the strongest punitive action against India since Trump took office in 2017.<\/p>\n
“I will continue to assess whether the Government of India is providing equitable and reasonable access to its markets, in accordance with the GSP eligibility criteria,” he said.
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