Trump Administration Ends Trade Preferences For India, Turkey
On March 4 President Donald Trump announced plans to remove India and Turkey from the Generalized System of Preferences, or GSP, a program that allows developing countries to export some products to the United States tariff-free. The decision would affect up to $5.6 billion worth of Indian exports to the United States and $1.7 billion in Turkish exports. According to Reuters, “India is the world’s largest beneficiary of GSP … and ending its participation would be the strongest punitive action the United States has taken against the country since Trump took office.”
Reuters also reported the process for ending Indian trade preferences would take at least 60 days after notifications could be submitted to Congress and the Indian government.
The Indian government reportedly is weighing how to respond. According to Politico, officials are specifically considering whether to voluntarily withdraw from GSP or to impose retaliatory tariffs between $250 billion to $500 billion. Stay tuned to Connecting the Dots for more information as this story develops.