US President Donald Trump has stirred global trade discussions by asserting that India has proposed eliminating all tariffs on American goods.
Speaking at a business event in Doha alongside announcements of deals with Qatar, including Boeing jet purchases, Trump revealed, “The Indian government has offered us a deal where they are willing to charge us literally no tariffs.”
The remarks, made while addressing Apple’s shift toward manufacturing iPhones in India, have yet to be officially confirmed by New Delhi, with the BBC awaiting a response from India’s commerce ministry.
The US and India are actively negotiating a trade agreement, intensified by Trump’s April imposition of up to 27% tariffs on Indian goods, with a 90-day tariff pause expiring on July 9.
Trump highlighted his past reservations about India’s high tariffs, telling Apple CEO Tim Cook, “I didn’t want you building in India—it’s one of the highest tariff nations.”
He added, “They’ve agreed to no tariffs. I told Tim, we’ve tolerated your China plants for years; we’re not interested in India taking over.” Apple’s recent earnings call confirmed a pivot, shifting most iPhone production to India and designating Vietnam for iPads and Apple Watches.
The timing aligns with a US-China agreement this week to reduce tariffs—US rates on Chinese imports dropping from 145% to 30%, and Chinese rates on some US goods from 125% to 10%.
Until recently, the US was India’s top trading partner, with $190 billion (£143 billion) in bilateral trade, though a $45 billion US trade deficit remains a sore point for Trump.
India has already cut tariffs on US bourbon, motorcycles, and select products, but a comprehensive deal may exclude autos and agriculture due to political sensitivities, trade expert Ajay Srivastava notes. He suggests a “zero-for-zero” approach could see 90% of US exports tariff-free, provided reciprocity is ensured.
Trump and Indian PM Narendra Modi aim to boost trade to $500 billion, building on recent Indian openness to deals—like a UK pact slashing duties on whisky and autos, and a $100 billion agreement with the European Free Trade Association (EFTA) after 16 years of talks.
An EU-India free trade agreement is also in the works for 2025. As negotiations intensify, the proposed tariff elimination could reshape US-India economic ties, though Delhi’s silence leaves the claim unverified for now.
Source: BBC