Trump ejects India from $5.6bn tariff deal over 'negative' trade barriers

Trump ejects India from $5.6bn tariff deal over 'negative' trade barriers

Trump's decision comes at a hard time for India's prime minister, Narendra Modi.

Trump's move will have a limited impact thus does not warrant a "knee-jerk reaction", top Indian trade official, Anup Wadhawan, was quoted by Reuters as saying on Tuesday, just hours after the United States announced its intention to "terminate" India's designation as a GSP beneficiary.

Trump said in a letter that India has not assured the United States that it will provide equitable and reasonable access to its markets.

Mr. Wadhawan added that India was still in talks with the U.S. on the higher import duties that country charges on steel and aluminium, and said that India was still reviewing whether it would impose retaliatory tariffs or not.

According to Times of India (ToI), the commerce secretary said: "India exports goods worth $5.6 billion under the GSP and the duty benefit is only $190 million annually".

Ending India's participation would be Trump's strongest punitive action against New Delhi since he took office in 2017.

Although Trump told United States lawmakers in his letter that he will "continue to assess whether the Government of India is providing equitable and reasonable access to its markets", and the withdrawal will kick in only after 60 days through a presidential proclamation, there is little chance of any deal being salvaged in the two month window.

Reuters last month reported the planned USA action, which comes as the United States and China appear close to a deal that would roll back US tariffs on at least $200 billion worth of Chinese goods.

Trump serves fast food feast to another football team
We've been through this before, but football players don't get to be elite athletes or large humans by eating fast food . North Dakota State has won the FCS national championship seven times in the last eight years.

He said in a separate letter that Turkey is no longer a "developing country based on its level of economic development".

In a letter to congressional leaders, Trump is reported to have said on Monday, "I am providing notice of my intent to terminate the designation of India as a beneficiary developing country under the GSP program". This was primarily because the economy of Turkey had improved a lot in the last four-and-a-half decades, he said.

United States commerce secretary Wilbur Ross recently raised concerns regarding new trade barriers created by India, hinting at the stringent e-commerce rules that affected U.S. companies such as Amazon and Walmart-owned Flipkart.

Last week, India delayed until April 1 higher tariffs on some USA imports announced earlier, in response to the Trump administration's refusal to exempt it from new steel and aluminum tariffs.

"GSP is more symbolic of the strategic relationship, not in value terms", added the source, who declined to be identified ahead of a news briefing by the Indian trade ministry.

Adding that the GSP benefits were "relatively moderate", Wadhawan added that the decision will not impact India's relations with the US.

The announcement that could be seen as a major setback to bilateral trade ties. India also boosted tariffs on electronics and smartphones.

Related Articles