"The United States has announced a decision to deprive Turkey of preferential access to the US market within the GSP [Generalised System of Preferences] framework, which the US has been revising since last August. This decision contradicts the goal announced by the governments of both countries to achieve a mutual trade turnover of $75 billion. At the same time, it will have a negative impact on small and medium-sized US companies, as well as manufacturers", Turkish Trade Minister Ruhsar Pekcan wrote on Twitter.
Trump's resolution to strip both Turkey and India of preferential access to the US market was announced Monday by the country's trade representative. Explaining the move, the body stated that the aforementioned states were no longer qualified as "beneficiary developing countries" under Washington's Generalised System of Preferences (GSP). This system provides many low-income and emerging economies duty-free access to the US market for some of their exports.
Speaking about India, Trump called it "a very high tariff nation" and accused the state of high tariffs: "When we send a motorcycle to India, it's a 100 percent tariff. They charge 100 percent. When India sends a motorcycle to us, we brilliantly charge them nothing". India, in turn, has brushed aside the US move, saying that it would have a minimal to moderate impact on India's exports.
Trade relations between the US and Turkey have been tense since last year, when Trump authorised the doubling of steel and aluminium tariffs on Ankara, up to 50 and 20 percent, respectively that resulted in the Turkish lira falling to a historic new low.
READ MORE: Turkey Slams US Sanctions, Says Dollar Losing Status as Global Trade Tool
Reacting to this, Turkey announced that it was raising levies on several types of US imports, including tobacco, alcohol and cars, among other products. Apart from that, the country vowed to challenge Washington's decision to double tariffs on steel and aluminium imports from Turkey in the World Trade Organisation (WTO).
READ MORE: Trump: US-Turkey Trade Ties Have 'Great Potential' to Grow
At the beginning of this year, the US president threatened to "devastate Turkey economically" if the latter did not ensure the safety of Kurdish forces in Syria.
