US President Trump has presented a victory present for newly re-elected Prime Minister Narendra Modi, and it’s the economic equivalent of a flaming bag of shit on India’s doorstep.
In his latest act of protectionism in what has already been an action-packed week, Trump announced that his administration was terminating India’s designation as a developing nation under a trade program that allowed Indian exporters to ship 2,000 products into the US duty free.
The decision to revoke India’s preferential trade status, which mirrors Trump’s decision to revoke Turkey’s status under the program a few weeks back, comes one day after Modi was sworn in for a second term.
Under the decades-old program, known as the Generalized System of Preferences (GSP), Indian companies were able to avoid some $5.7 billion in duties back in 2017. The new standards will take effect June 5, 2019.
The White House’s proclamation also imposes tariffs on solar cells and washing machines from India and Turkey. Those tariffs had been imposed by Trump in 2018, but India and Turkey had been exempt because of their status as developing nations under the GSP.
One critic of Trump’s decision warned that ending the designation for India would cost American consumers hundreds of millions of dollars a year.
There are no winners from the fascist decision, other then the bankrupted US regime collecting billions more in taxes thanks to these import duties.
American importers will pay more, while some American exporters will continue to face current market access barriers in India and others, including farmers, are very likely to be subject to new retaliatory tariffs.
Zero Hedge. com / ABC Flash Point Extortion News 2019.