The U.S. President Donald Trump appeared ready to start a new front in his trade spats with a plan to finish preferential trade action for India that permits duty-free entry for $5.6 Billion worth of the country’s exports to the U.S. Anup Wadhawan—Top Trade Official—stated that India does not intend to enforce retaliatory tariffs on the U.S. goods. Trump—who has pledged to curb the U.S. trade deficits—has frequently called out India for its elevated tariffs, and the U.S. trade executives stated removing the concessions would take minimum 60 Days after announcements to Congress and India. In a letter to congressional leaders, Trump stated, “I am taking this measure as, after concentrated engagement amid the U.S. and the administration of India, I have resolute that India has not guaranteed the U.S. that it will give reasonable and equitable access to the markets of India.”
Anup Wadhawan stated that the withdrawal of the GSP (Generalized System of Preferences) for Indian goods would have restricted impact. The two nations had been functioning on a trade package to address each other’s apprehensions, he stated. India’s exports of marine, farm, and handicraft products to the U.S. can be heavily affected. Ajay Sahai—Director General of the FIEO (Federation of Indian Export Organisations)—told to Reuters, “We have worries that our labor-intensive exports of marine, agriculture, and handicraft goods to the U.S. would be affected hard.” Reportedly, India is the largest receiver of the GSP program globally and ending its contribution would be the strongest penalizing action for India ever since Trump took office in 2017.
On a similar note, recently, a trade official stated that India would not discuss penalizing duty with the U.S. India is protecting retaliatory duties out of its talks with the U.S., Commerce Ministry Secretary Anup Wadhawan, following Trump stated he plans to end India’s special trade treatment. Wadhawan reported, “Discussions are going on with the U.S., and given pleasant and strong associations, keeping retaliatory regulations out of it. The administration will internally evaluate the retaliatory regulation issue.”