President Trump terminates India’s preferential GSP status

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June 2019


By proclamation issued May 31, President Trump announced that the United States has terminated India’s designation as a beneficiary developing country under the Generalized System of Preferences (GSP) program. Following implementation of this directive, goods previously imported into the United States from India under GSP will no longer be eligible to enjoy duty-free treatment.

The proclamation follows the United States Trade Representative (USTR)’s March 4 announcement that the United States intended to terminate India’s and Turkey’s designations as beneficiary developing countries under the GSP program. President Trump issued a proclamation on May 16 that terminated Turkey’s designation. For prior coverage, see PwC Insights, President Trump terminates Turkey’s preferential status under the GSP program, May 16, 2019.

The takeaway

American companies engaging in business with Indian manufacturers need to review their duty exposure in light of the May 31 proclamation. US businesses facing significant cost increases should take inventory of their current stock. To prepare for the immediate future, they should reassess supply chains on the basis of potential duty exposure and overall cost.

Contact us

Anthony Tennariello

Customs and International Trade Co-leader, PwC US

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