Trump says India willing to drop tariffs on US goods, raising hopes for a landmark trade deal between the two nations. Speaking in Doha, US President Donald Trump said India had proposed a tariff-free arrangement for American imports.
The statement came during a business leaders’ meeting, where Trump also announced deals with Qatar, including aircraft sales. He described the offer from Delhi as a significant gesture, saying, “They are willing to literally charge us no tariff.”
India has not yet commented on Trump’s claim. Its commerce ministry has been contacted for clarification.
The US and India are currently negotiating a comprehensive trade agreement. The talks gained momentum after Trump imposed up to 27% tariffs on Indian goods in April.
India is now pushing to finalize a deal during the 90-day pause on new US tariffs, which ends on 9 July. This deadline has added urgency to the negotiations.
Trump used Apple as an example during his speech, referencing the tech giant’s shift from China to India for iPhone production. “I told Tim [Cook], we’re not interested in you building in India. They can take care of themselves,” Trump said, referring to Apple’s CEO.
In a recent earnings call, Apple confirmed that most iPhone production would move to India. Vietnam will handle production for iPads and Apple Watches.
India’s trade policy has seen a shift recently. Last week, it signed a deal with the UK that reduces tariffs in protected sectors like whisky and automobiles. It also finalized a $100 billion trade pact with the European Free Trade Association after 16 years of talks.
The US was India’s top trading partner until recently. Their trade volume reached $190 billion, but the US currently has a $45 billion deficit with India. Trump is determined to narrow that gap.
Delhi has already reduced tariffs on some American goods, including motorcycles and Bourbon whiskey. However, agriculture and autos remain politically sensitive areas for India.
Trade expert Ajay Srivastava suggested India may adopt a “zero-for-zero” model. That would make 90% of US exports tariff-free from day one, with equal cuts from both sides. However, he stressed that reciprocity is essential.
Trump and Indian Prime Minister Narendra Modi aim to double bilateral trade to $500 billion. Despite progress, achieving a full deal may still require overcoming complex domestic concerns.
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