The President of the United States, Donald Trump, said that it is his intention to end India's preferential trade treatment under a program that allows Indian exports worth $5.6 billion to enter the US duty-free.

According to a Reuters report, Trump in a letter to the American congressional leaders said, "I am providing notice of my intent to terminate the designation of India as a beneficiary developing country under the Generalized System of Preferences (GSP) program."

He further said, "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."

With an intention to reduce US trade deficit, he has been repeatedly calling out India for its high tariffs. Its trade deficit will India was at $27.3 billion in 2017. Being the largest beneficiary of the GSP program, if it comes into force, it will be the harshest blow on India from the Trump administration since 2017.