President Donald Trump, who has been critical of India’s refusal to reciprocate U.S. trade concessions, has decided to terminate status for New Delhi, known as Generalized System of Preferences (GSP), which saw India sending $5.7 billion duty-free products to the United States last year.
India is the biggest beneficiary of the GSP, which Washington normally grants to developing countries to help them with duty-free imports into the United States.
“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,” Trump noted in a letter addressed to Speaker of the House.
“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 noted.
Speaking at an event last week, the U.S. president termed India a “high-tariff nation” and said he wanted to impose a reciprocal tax on imports from New Delhi.
“India is a very high-tariff nation. They charge us a lot. When we send a motorcycle to India, it’s a 100 percent tariff, they charge 100 percent. When India sends a motorcycle to us, we brilliant charge them nothing,” Trump said at the Conservative Political Action Conference on Saturday.
“So I want a reciprocal tax, or at least I want to charge a tax.”
