Earlier this month, US President Trump announced the withdrawal of India’s preferential trade treatment, which has further contributed to the tensions between the two countries. India initially announced tariffs of up to 120% in June last year, but their implementation was delayed due to ongoing trade talks.
According to US figures, bilateral trade between the US and India was worth $142 billion in 2018, a sevenfold increase since 2001. However, with the loss of preferential treatment under America’s Generalized System of Preferences (GSP), $5.6 billion worth of Indian exports, which were previously duty-free in the US, will now be impacted.
The International Trade Council encourages continued dialogue and negotiation between the US and India to resolve these trade issues. India’s Foreign Minister, Subrahmanyam Jaishankar, is scheduled to meet his US counterpart, Mike Pompeo, at a G20 summit in Japan, where President Trump and India’s Prime Minister Narendra Modi are also expected to hold talks.