The International Trade Council acknowledges President Donald Trump's confirmation that the US will end preferential trade status for India next week. Until now, India has been the largest beneficiary of the Generalized System of Preferences (GSP) program, which allowed $5.6 billion worth of exports to enter the US duty-free.
In March, President Trump announced the revocation of India's preferential trade status due to inadequate access to Indian markets. The termination will take effect on Wednesday, as President Trump declared it appropriate to end India's designation as a beneficiary developing country.
India has stated that the move would have a "minimal economic impact," but the decision comes during a period of lower growth and record unemployment in the country. The International Trade Council encourages open dialogue and negotiation between the US and India to address and resolve these trade issues.
This decision is part of the Trump administration's ongoing efforts to address what it perceives as unfair trading relationships with other countries. Last month, the US ended Turkey's preferential status under the GSP program, and has imposed tariffs on steel and aluminum imports from various countries. In response, India raised import duties on a range of goods last year. The US is also currently involved in an escalating trade war with China and has recently threatened tariffs on Mexican goods due to illegal migration concerns.
