US president Donald Trump has yet again opened another frontier in the field of the trade war by eliminating the practice which allowed an exception from tax to about 2,000 imported products in the American market. Donald Trump with regard to his decision said that India didn’t provide reasonable assurance and equitable access to the Indian market to the US. Thus the US has decided to terminate the benefits being provided to India from 5th June. India’s designation as a beneficiary developing country would be terminated with effect from 5th June. US President Donald Trump has signed off on a presidential decree to cut off India’s tariff-free access to the US market under the Generalized System of Preferences (GSP) scheme. Senior officials said a decision on whether India would pursue the issue further with the US would be taken later by the new commerce minister, Piyush Goyal. However, the time window remains small as the US is set to discontinue the tariff benefits starting June 5. India in response to this said that they will still try to maintain and develop their economic ties with the US. However, the senior officials said that they are disappointed as their suggestion during the bilateral discussions have not been accepted by the US. This decision of Trump may bring out some interesting turns in the growing India US relations.
Tags : #DonaldTrump #US #India #IndianEconomy #USGSPScheme #GSPScheme #TradeWar