India, the world's largest milk-producing nation, has traditionally restricted dairy imports to protect the livelihoods of 80 million rural households involved in the industry.
In a major White House declaration, US President Donald Trump on Friday said the designation of India as a beneficiary developing country is terminated, effective June 5.
Trump said India has not assured the US that it will provide equitable and reasonable access to its markets.
Donald Trump had in March informed the US Congress about his intent to terminate the designation of India as a beneficiary developing country under the Generalised System of Preferences programme.
India was the largest beneficiary of the programme in 2017 with $5.7 billion in imports to the US given duty-free status, according to a Congressional Research Service report in January.
