President Trump: India willing to cut 100% of tariffs for the United States

President Trump: India willing to cut 100% of tariffs for the United States

In a significant development, U.S. President Donald Trump has stated that India has offered the United States a trade deal with no tariffs. This announcement comes amidst ongoing trade negotiations between the two countries. According to Trump, India is willing to charge no tariffs on U.S. goods, a move aimed at securing a deal within the 90-day pause on tariff hikes announced by Trump on April 9.

The United States is India's largest trading partner, with bilateral trade totalling $129 billion in 2024. The trade balance is currently in favor of India, which runs a $45.7 billion surplus with the U.S. [1]

India has been actively seeking to clinch a trade deal with the U.S. to avoid higher import and export costs. The country's equity benchmarks jumped about 1.5 percent following Trump's comments. The Nifty 50 edged up 1.6 percent while the BSE Sensex gained 1.48 percent, reaching their highest levels in seven months. [2]

The Indian government has disputed Trump's claim but is actively engaged in negotiations. India has proposed zero tariffs on 60 percent of U.S. imports in a first-phase deal and preferential access to nearly 90 percent of the merchandise India imports from the U.S. [2]

However, the proposed zero-tariff regime faces several obstacles. India's expectation of being exempt from tariffs is at odds with the deal struck between the U.S. and the UK, where only certain goods had tariffs removed. Additionally, domestic issues such as shielding agricultural markets from cheap imports and geopolitical considerations, including India's trade relationship with China, could complicate the deal. [2]

The U.S.-China tariff cuts may also impact Indian exports. While the tariff reduction is likely to support growth in U.S.-China bilateral trade, India can leverage its strengths in sectors like pharmaceuticals and IT. Exporters emphasize the need for proactive engagement with the U.S. to secure preferential trade access. [3]

For now, trade talks are thought to be progressing well. A delegation of Indian officials is set to visit the U.S. later this month to move talks forward. The outcome of these negotiations will significantly impact the trade dynamics between the two major economies.

References:
[1] https://www.zawya.com/en/economy/global/update-1-trump-india-has-offered-us-a-trade-deal-with-no-tariffs-ja6xs4fn
[2] https://www.aljazeera.com/news/2025/5/16/has-india-offered-trump-zero-tariffs-what-we-know-and-why-it-matters
[3] https://economictimes.indiatimes.com/news/economy/foreign-trade/us-china-tariff-cuts-may-hit-indian-export-edge-say-exporters/articleshow/121119056.cms