India’s Prime Minister Narendra Modi (R) and US President Donald Trump during a meeting in the sidelines of the G20 Leaders’ Summit in Buenos Aires, on November 30, 2018.
Saul Loeb | AFP | Getty Images
President Donald Trump said Tuesday the U.S. needs to stand up to India on the trade front.
In a tweet, Trump said: “India has long had a field day putting Tariffs on American products. No longer acceptable!”
The iShares MSCI India ETF (INDA) ETF fell more than 1% in the premarket after the tweet was sent. It later recovered to trade along the flatline, however.
Earlier this year, the Trump administration stripped India of a preferential status that exempted billions of dollars worth of products made there from U.S. levies. “I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,” Trump said in a proclamation.
India has tariffs on U.S. products such as Harley-Davidson motorcycles and U.S.-grown apples, among others. In June, Trump said India’s 50% levy on Harley-Davidson bikes was “unacceptable.”
The latest escalation comes as the U.S. tries to broker a trade deal with China. U.S. officials are expected to meet with Chinese trade negotiators this week.
Late last month, Trump and Chinese President Xi Jinping agreed to hold off on slapping additional tariffs on U.S. and Chinese products. China and the U.S. hiked tariffs on billions of dollars worth of each other’s products in May, sparking fears of a prolonged trade war between the world’s largest economies.
The Indian Embassy in Washington, D.C., did not immediately respond to CNBC’s request for query.
—CNBC’s Amanda Macias contributed to this report.