US President Donald Trump has stated that he is planning to finish India’s preferential trade treatment under the Generalized System of Preferences (GSP). Basically, the GSP system allows duty-free entry of $5.6 billion worth of Indian exports to the United States. It seems that US President Trump, who has promised to cut down US trade deficits, has over and over again called out India for its high levies. Now it seems that Trump is ready to start a new debate in his trade battle on Monday as he plans to shun preferential treatment.

According to the Office of the United States Trade Representative, US trade preference programs like the Generalized System of Preferences to offer chances to many of the world’s poorest nations to use trade in order to grow their economies and rise from poverty.

However, India downplayed the impact of the action, stating that it was keeping punitive tariffs out of its discussions with the U.S.; however, the opposition could grab on the issue to humiliate its Prime Minister Narendra Modi before the general elections this year. U.S. trade officials stated that dismissing the benefits or privilege would take around 60 days after notifications to Congress and the Indian government.

Trump in a letter to congressional leaders stated that he is taking this step, after the in-depth engagement between the US and Indian government, India didn’t guarantee to the US that India would present the US with fair and reasonable access to Indian markets.

India is the world’s biggest recipients of the GSP program which dates from the 1970s. However, ending its participation would be a powerful disciplinary action for the South Asian country since Trump assumed office in 2017.

It was reported last month that the planned U.S. action that comes as the United States and China seem close to a deal, which would reduce U.S. tariffs on at least $200 billion worth of Chinese goods. The U.S. Trade Representative’s Office stated that removing India from the GSP program would be achieved through a presidential declaration.

Farm, marine and handicraft products are among India’s exports most likely to be affected by this step of the U.S., Ajay Sahai, the director general of the Federation of Indian Export Organizations.