With 2020 US Presidential Elections approaching, US President Donald Trump is making all possible efforts to reduce the US' goods and services trade deficit with India which makes it $23.7 billion.
Trump on Monday cleared his intentions of ending a preferential trade treatment US has been giving to India which allows Indian exports worth $5.6 billion to enter their territory duty free.
Trump had made a statement about the same last week as well calling out India for charging 100 per cent tarrif on US exports.
“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,” said the US President.
It will be a big step for the US Congress to remove India from the GSP (Generalized System of Preferences) program as India is one of its biggest beneficiaries.
Though it will take at least 60 days to be manifested after the notifications reaching to the Indian government followed by a Presidential Proclamation.