The U.S. government announced plans to revoke India's preferential trade status, which grants duty-free access for $5.6 billion in annual exports to the United States, according to a Reuters report. The move, pending a 60-day notification period for Congress and Indian authorities, marks the first significant punitive action against India since President Donald Trump took office.
India's Commerce Secretary Anup Wadhawan stated that the Generalized System of Preferences (GSP) provided an annual benefit of just $190 million, emphasizing the limited financial impact. He noted ongoing discussions with the U.S. to avoid retaliatory measures, while acknowledging the symbolic significance of the trade relationship.
Trump cited India's failure to ensure equitable market access in a letter to congressional leaders, citing the U.S. trade deficit with India reached $27.3 billion in 2017. The U.S. Trade Representative’s Office said India’s removal from the GSP would not take effect for at least 60 days after notifications.
India's top GSP exports to the U.S. in 2017 included motor vehicle parts, jewelry, and building materials. A 2016 file photo showed U.S.-India trade interactions, while 2018 data indicated the trade deficit had narrowed by over $4 billion. Analysts warned the move could become a political issue ahead of India's general elections.
