U.S. President Donald Trump looked set to open a new front in his trade wars Monday with a plan to end preferential trade treatment for India that allows duty-free entry for up to US$5.6 billion worth of its exports to the United States.

India played down the impact of the move, saying it was keeping retaliatory tariffs out of its talks with the United States, but the opposition could seize on the issue to embarrass Prime Minister Narendra Mod ahead of general elections this year.

Trump, who has vowed to cut U.S. trade deficits, has repeatedly called out India for its high tariffs, and U.S. 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 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,” Trump said in a letter to congressional leaders.

India is the world’s largest beneficiary of the GSP program, which dates from the 1970s, and ending its participation would be the strongest punitive action for the South Asian nation since Trump took office in 2017.

Farm, marine and handicraft products were among India’s exports most likely to be hit by the move, Ajay Sahai, the director general of the Federation of Indian Export Organizations, told Reuters.   (SD-Agencies)