Trump loses balance over 'trade imbalance', can end all tax exemptions granted to India

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First Published 5, Mar 2019, 11:57 AM IST
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Trump loses balance over 'trade imbalance', can end all tax exemptions granted to India
Highlights

US President Donald Trump said on Monday that he wants to endorse the tariff free facility on export of $ 5.6 billion in trade with India. Under the agreement between the two countries, India received business concession from the United States. 

Washington, DC: Donald Trump has again criticised the high import duty on many American products in India. Saying that India was imposing a very high rate of interest, Trump said that America would reciprocate by imposing similar charges on Indian products. 

In a letter to the parliamentary leader, Trump said, "I am taking this step because after deep engagement between the United States and India, I have realised that India has not given the United States the assurance that American goods will be available in Indian markets with equal and fair access."

In the Conservative Political Action Conference (CPAC) in Maryland, the US President asked, "Does India consider us to be a fool?" Trump said that the whole world respects America. America gives a country 100 tariffs on their belongings and they cannot find anything similar on their goods from India. Hence, this coalition will not move any further, he added. 

Taking a big step against India's trade and investment policies, the US started churning on February 6 to end its zero tariff policy. Under this policy, tariffs are not levied on goods being exported from India.

Under the Generalised System of Preferences (GSP), India has got concessions in tariff. On the export of goods worth about $ 5.6 billion ( Rs 40,000 crore) in the US, the concession is granted in the tariff. India, the beneficiary of the scheme created in 1970, is the largest country in the world.
 

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