Skip to content
Search

Latest Stories

Delhi plays down impact after US scraps trade privilege for India

US PRESIDENT Donald Trump looked set to open a new front in his trade wars yesterday (4) with a plan to end preferential trade treatment for India that allows duty-free entry for up to £4.25 billion worth of its exports to the US.

India played down the impact, saying it was keeping retaliatory tariffs out of its talks with the US, but the opposition could seize on the issue to embarrass prime minister Narendra Modi ahead of general elections this year.


Trump, who has vowed to cut US trade deficits, has repeatedly called out India for its high tariffs, and the US trade officials said scrapping the concessions would take at least 60 days after notifications to Congress and the Indian government.

"I am taking this step because, after intensive engagement between the US 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," Trump told congressional leaders in a letter.

India is the world's largest beneficiary of the Generalized System of Preferences (GSP), which dates from the 1970s, and ending its participation would be the strongest punitive action against it since Trump took office.

The US trade representative's office said India's removal from the GSP would not take effect for at least 60 days after the notifications.

"Discussions are on with the US, and given cordial and strong ties, (we are) keeping retaliatory tariffs out of it," India’s commerce secretary Anup Wadhawan said in New Delhi.

The preferential treatment brought India an annual "actual benefit" of just £144.33 million, he told reporters.

Of the 3,700 products covered, India used the concession for just 1,784, Wadhawan added.

"The benefit to industry is low, US tariffs are already low," said another government official, who spoke on condition of anonymity. "GSP is more symbolic of the strategic relationship, not in value terms."

Farm, marine and handicraft products are among India's exports most likely to be hit, Ajay Sahai, the director general of the Federation of Indian Export Organisations, said, but Indian shares were little changed on the news.

Meanwhile, New Delhi's commerce ministry said that India's tariffs were in line with its commitments to the World Trade Organization, while imports of US oil and natural gas had narrowed Washington's trade deficit with India in recent years.

Monday's decision came as Washington and Beijing seek to negotiate an exit to the Trump administration's most high-profile and costly trade battle.

The US and China eventually agreed to a 90-day truce to work out their differences, and Beijing and Washington have been edging closer to an agreement in recent weeks.

The truce was scheduled to end this week, but Trump lifted an ultimatum on further tariff hikes after expressing satisfaction with the progress made in several rounds of talks.

Under an agreement taking shape, Beijing would lower some barriers on US companies' operations in China and purchase large amounts American agricultural and energy goods if the US lowered most of the tariffs in return.

However, leading news reports have said significant details remained unresolved.

(Reuters/AFP)

More For You

Pakistan airspace curbs push up costs for Indian airlines

FILE PHOTO: Passengers stand in a queue before entering the Chhatrapati Shivaji Maharaj International Airport in Mumbai. (Photo by SUJIT JAISWAL/AFP via Getty Images)

Pakistan airspace curbs push up costs for Indian airlines

TOP Indian airlines Air India and IndiGo are bracing for higher fuel costs and longer journey times as they reroute international flights after Pakistan shut its airspace to them amid escalating tensions over a deadly militant attack in Kashmir.

India has said there were Pakistani elements in Tuesday's (22) attack in which gunmen shot and killed 26 men in a meadow in the Pahalgam area of Indian Kashmir. Pakistan has denied any involvement.

Keep ReadingShow less
Campbell Wilson

Air India CEO Campbell Wilson steps down as Air India Express chair

Air India CEO Campbell Wilson steps down as Air India Express chair

AIR INDIA CEO Campbell Wilson is stepping down as chair of Air India Express, the airline’s low-cost subsidiary. He will be replaced by Nipun Aggarwal, Air India’s chief commercial officer, according to an internal memo sent on Tuesday.

Wilson will also step down from the board of Air India Express. Basil Kwauk, Air India’s chief operating officer, will take his place.

Keep ReadingShow less
Air India eyes Boeing jets rejected by Chinese airlines: report

Tata-owned Air India is interested in purchasing jets that Chinese carriers can no longer accept (Photo credit: Air India)

Air India eyes Boeing jets rejected by Chinese airlines: report

AIR INDIA is seeking to acquire Boeing aircrafts originally destined for Chinese airlines, as escalating tariffs between Washington and Beijing disrupt planned deliveries, reported The Times.

The Tata-owned airline, currently working on its revival strategy, is interested in purchasing jets that Chinese carriers can no longer accept due to the recent trade dispute. According to reports, Tata is also keen to secure future delivery slots should they become available.

Keep ReadingShow less
Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

The IT service firm said its revenue would either stay flat or grow by up to three per cent

Getty Images

Infosys forecasts lower annual growth after Trump tariffs cause global uncertainty

INDIAN tech giant Infosys forecast muted annual revenue growth last Thursday (17) in an outlook that suggests clients might curtail tech spending because of growing global uncertainty.

The IT service firm said its revenue would either stay flat or grow by up to three per cent in the fiscal year through March 2026 on a constant currency basis. The sales forecast was lower than the 4.2 per cent constantcurrency revenue growth Infosys recorded in the previous financial year.

Keep ReadingShow less
UK retailers

For many retailers, this has meant closing stores, cutting jobs, and focusing on more profitable business segments

Getty

6 UK retailers facing major store closures in 2025

In 2025, several UK retailers are experiencing major store closures as they struggle to navigate financial pressures, rising operational costs, and changing consumer behaviours. These closures reflect the ongoing challenges faced by traditional brick-and-mortar stores in an increasingly digital world. While some closures are part of larger restructuring efforts, others have been driven by financial instability or market shifts that have forced retailers to rethink their business strategies. Let’s take a closer look at six major UK retailers affected by these trends.

1. Morrisons

Morrisons, one of the UK's largest supermarket chains, is undergoing a significant restructuring in 2025. The company has announced the closure of several in-store services, including 52 cafés, 18 Market Kitchens, 17 convenience stores, and various other departments. This move is part of a larger strategy to streamline operations and address rising costs. Morrisons’ parent company, CD&R, has been focusing on reducing overheads and refocusing on core services.

Keep ReadingShow less