Trump plans end to India’s $5.6bn tariff free deal

5 Mar 19

US president Donald Trump has said he wants to end an arrangement with India, which allows $5.6bn worth of the South Asian country’s exports to enter the US duty free.

India had failed to assure the US it would provide reasonable access to its markets in return for the deal, the US president said.

Trump has directed the US Trade Representative’s office to remove India from a programme, which grants ‘preferential trade treatment’ to countries.  

In a letter to Congress, the president said India had “not assured the US that it will provide equitable and reasonable access to the markets of India”.

The Indian government has responded, saying the move would have a “minimal economic impact”.

This was the latest move by the current US government administration to counter what it sees as unfair trade practices. The US has promised to reduce US trade deficits and has repeatedly criticised India for its high tariffs.

The US will also end Turkey’s preferential trade status, according to the BBC.

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