India is next on Trump's trade war agenda
- 2 months ago
Donald Trump seems to engage in another trade battle, this time with India as he seeks to end the preferential treatment goods from the country which amounts to $5.6 billion in exports.
India has waved off concerns by stating the tariffs are not important to its current dealings with the U.S. however with the upcoming elections, opposition parties may take this as a chance to ridicule current Prime Minister Modi.
Trump, who has vowed to cut U.S. trade deficits, has repeatedly called out India for its high tariffs, and U.S. trade officials said scrapping the concessions would take at least 60 days after notifications to Congress and the Indian government.
"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 will provide equitable and reasonable access to the markets of India."
India is the world's largest beneficiary of the Generalized System of Preferences (GSP), which dates from the 1970s, and ending its participation would be the strongest punitive action against it since Trump took office.
Source: Smart Trend Team