Trump set to scrap trade privileges for India


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Trump set to scrap trade privileges for India

The US President Donald Trump appeared to be setting the stages for a new front in his trade wars, as the US administration had been closing in to end a preferential trade treatment for India, which had been allowing duty-free entry of up to $5.6 billon worth of Indian goods.

Monday’s (March 4th) move came forward, as trade frictions between the US and India had been mounting on several financial war front including decreasing price of US-made medical equipment and an overhaul of Indian e-commerce treatment, which potentially led millions from US-based Walmart owned Amazon India’s goods to ash and upset Trump Administration.

Despite growing tension with India on its new e-commerce reform, the US had also been vying to sign a trade pact with other countries such as China. Apart from India, the Trump administration had also been trying to incline additional tariffs on exports of Europe-made cars.

So far, India has been playing safe ahead of an upcoming election, saying that it would not be applying any kind of retaliation tariff on US goods, however, the opposition political parties could seize the opportunity to embarrass PM Narendra Modi.

Citing an intensive engagement between the US and the govt. of India, US President told his Congressional leaders in a letter, “I am taking this step because, after the 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. ”