US President Donald Trump has claimed that India is prepared to eliminate tariffs on American goods as part of ongoing trade negotiations between the two nations. Speaking at a business event in Doha, Trump said the Indian government has “offered us a deal where basically they are willing to literally charge us no tariff.”
The assertion comes at a critical time, as India and the United States continue discussions aimed at forging a broader trade agreement. However, the Indian government has yet to publicly confirm Trump’s statement, and India’s Ministry of Commerce has not issued an official response.
Trump’s comments were made in the context of Apple’s increasing investment in India, with the company shifting iPhone production from China to Indian facilities. Trump told Apple CEO Tim Cook that he opposed the move, citing India’s historically high tariffs. “I said ‘Tim, we are treating you really good… we are not interested in you building in India,’” Trump remarked.
India has been working to ease trade tensions with the US, particularly since Trump imposed tariffs of up to 27% on Indian imports in April. With a 90-day pause on those tariffs set to expire on July 9, Delhi is pushing for a resolution that will avoid further economic disruption.
Trade between the two countries reached $190 billion recently, but the US continues to run a $45 billion trade deficit with India. While Delhi has reduced tariffs on select items such as motorcycles and Bourbon whiskey, broader tariff elimination could reshape the trade relationship.
Experts suggest India may pursue a “zero-for-zero” tariff strategy, eliminating duties on most goods except for sensitive sectors like agriculture and automobiles. “The deal must ensure strict reciprocity,” noted Delhi-based trade analyst Ajay Srivastava.
India’s recent willingness to engage in trade agreements marks a shift from its previous protectionist stance. It signed a significant $100 billion deal with the European Free Trade Association last year and recently concluded a pact with the UK. A trade agreement with the European Union is also in the works.
Despite the optimism, key sticking points remain. India’s reluctance to open its agriculture sector could delay any final US-India deal, even as both sides aim to double trade to $500 billion.
