Donald Trump said on Monday that he plans to end preferential trade treatment for India, which currently allows $5.6 billion worth of that country’s exports to enter the U.S. duty-free.
The Office of the U.S. Trade Representative said in a statement that the decision was made because India has failed “to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors.” The office added that the removal of India’s preferential status wouldn’t go into effect for at least 60 days.
The move comes after Trump, during a speech Saturday at the Conservative Political Action Conference, criticized India for being “a very high-tariff nation.”
“Discussions are on with the United States, and given cordial and strong ties, keeping retaliatory tariffs out of it,” Wadhawan told reporters. “The government will internally review the retaliatory tariff issue.”