BlogHear.com | May 15, 2025
DOHA, QATAR —
US President Donald Trump has said that India has offered to eliminate all tariffs on American goods, in what could be a major development in the ongoing trade negotiations between the two countries.
Speaking at a business event in Doha on Wednesday, Trump stated,
“They [India] have offered us a deal where basically they are willing to literally charge us no tariff.”
The Indian government has not officially responded to the claim. The BBC has contacted India’s Ministry of Commerce for comment, but no statement has been released so far.
Trade Talks Underway Amid Tariff Deadline
The announcement comes as India and the United States are engaged in talks to finalize a broader trade agreement. The urgency is heightened by a 90-day pause on increased US tariffs, which is set to expire on July 9. Trump imposed tariffs of up to 27% on Indian goods in April, prompting Delhi to seek a swift resolution.
Trump’s remarks were made in the context of a broader conversation on US-India trade relations, particularly highlighting the tariff barriers that have previously complicated negotiations.
He also referred to Apple’s recent decision to shift iPhone production from China to India, saying he advised CEO Tim Cook against expanding in India, calling it “one of the highest tariff nations in the world.”
“We are not interested in you building in India. India can take care of themselves,” Trump reportedly told Cook.
No Formal Deal Yet, Details Awaited
While Trump’s announcement has stirred speculation, no official details of such a tariff-free agreement have been released by either side. Observers say the statement could be part of ongoing bargaining tactics, especially as Trump seeks to reduce the $45 billion US trade deficit with India.
Trade expert Ajay Srivastava, based in Delhi, suggested India might be considering a “zero-for-zero” tariff approach — eliminating tariffs on 90% of US exports while excluding politically sensitive sectors like autos and agriculture.
“The deal must ensure strict reciprocity, with both sides eliminating tariffs equally,” Srivastava said.
Growing Openness in India’s Trade Policy
India’s approach to trade has become more flexible in recent years. The country recently signed significant agreements with:
- United Kingdom – Slashing tariffs on goods like whisky and automobiles
- European Free Trade Association (EFTA) – Finalized a $100 billion free trade pact after 16 years
- European Union – Actively negotiating a comprehensive trade agreement for completion this year
These developments reflect Delhi’s willingness to modernize its trade architecture and strengthen global partnerships amid changing geopolitical dynamics.
A $500 Billion Target
President Trump and Prime Minister Narendra Modi have previously committed to increasing US-India bilateral trade to $500 billion, up from the current volume of around $190 billion.
Whether a zero-tariff agreement is imminent remains unclear, but Trump’s comments signal that both countries are pushing for a historic trade breakthrough that could benefit multiple sectors — from tech to manufacturing.
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