Friday, May 31, 2019

Now Trump Is Threatening to Place Tariffs on Goods From India

President Trump with India's
Prime Minister Narendra Modi
There appears to be no spot on the planet where President Trump wants to start an unproductive trade war.

The United States on Thursday said India’s suspension from the list of countries benefiting from a duty-free import scheme that was announced in March is a “done deal”, reports the Hindu Times.

“There is every reason to believe that the GSP (Generalized System of Preferences, which gives favorable access to goods from developing countries) suspension will move forward,” a US government official said. The next step is a presidential memorandum, which has been due since May 4.

The Hindu Times assessment:
India has been the largest beneficiary of the GSP programme, which allows certain imports from 120 countries to enter the United States at zero tariff. It sold an estimated $6.3 billion worth of goods to the United States under this programme in 2018 , according to a new report by the Congressional Research Service, a non-partisan source of research, analysis and projections for US lawmakers.

Withdrawal of zero-tariff benefits would subject these products, presuming their volumes remain unaffected, to $190 million, according to official Indian estimates. But people familiar with these discussions fear the new tariff would make these products costlier for US importers, who could then switch from Indian suppliers to those who can supply for less, minus the tariff, to keep down their prices.
I have made clear, tariffs never make sense:


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