Trump planning to end India's status as preferential trade partner

Trump planning to end India's status as preferential trade partner

President TrumpDonald John TrumpDem lawmaker says Electoral College was 'conceived' as way to perpetuate slavery Stanley Cup champion Washington Capitals to visit White House on Monday Transportation Dept requests formal audit of Boeing 737 Max certification MORE said 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.

"I am taking this step because, after intensive engagement between the United States and the government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India," Trump wrote in a letter to Congress, according to multiple media reports.

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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."

“When we send a motorcycle to India, it’s 100 percent tariff. They charge 100 percent when India sends a motorcycle to us, we brilliantly charge them nothing," he said, according to HuffPost.

“So, I want a reciprocal tax or at least, I want to charge a tax. It’s called the mirror tax, but it’s reciprocal,” Trump added.

India's Commerce Ministry secretary, Anup Wadhawan, said Tuesday that India doesn't plan to discuss retaliatory action against the U.S., according to Reuters.

“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.”