The U.S. announced plans Monday to end the preferential trade status that allows $5.6 billion worth of India's exports to enter the U.S. duty-free.
Details: The move is the latest step in President Trump's trade war, designed to cut U.S. deficits. India is the biggest beneficiary of the Generalized System of Preferences (GSP) and the decision comes weeks before India's Prime Minister Narendra Modi faces a general election. The action was made because of India's "failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors," the Trade Representative’s Office said in its announcement.
What's next: The U.S. Trade Representative’s Office said the changes would take at least 60 days after notifications to Congress and the governments of India and Turkey, which will also lose its status because the office said it no longer qualifies for the benefit.
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