The US President Donald Trump plans to meet Prime Minister Narendra Modi this Friday to discuss the recent hike in tariffs by India against the United States. Donald Trump recently said, “this is highly unacceptable, and the Tariff Hike must be withdrawn”.
Trump has been in distress over economic relationship that India and USA hold. He has named India a “tariff-king” and has threatened a few times to inflict tariffs as an answer. India has imposed additional custom duties on 29 USA products, which include diamond, walnut, pulses etc. with effect from 16 June 2019. This action was taken after Washington withdrew New Delhi from the list of Key Trade Privileged States.
“I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high tariffs against the United States, just recently increased the tariffs even further,” Trump said on Twitter.
US President Donald Trump administration wants Prime Minister Narendra Modi to reduce the trade barriers and adopt “fair and reciprocal” trade.
G-20 Summit is about to begin in Osaka, Japan. And Trump has decided to have a face to face conversation with Modi Ji on the sidelines of G-20 Summit. This meeting would be Trump’s first meeting after the victorious winning of BJP in Loksabha 2019 elections.
Trump and his government have terminated India’s designation as a beneficiary developing nation under the GSP trade programme.
The Generalized System Preference (GSP) is one of the United States’ oldest trade preference programmes, which encourages economic development of the nations/countries by permitting free trade for over thousands of products.
Tariff Hike by India, after the U.S.A. ceasing India from the GSP, is a rationalized action. This move by Prime Minister Narendra Modi Ji seems to be a quick-witted move, as Trump himself now, wants to meet Indian Prime Minister.