Hajra Naz
Former U.S. President Donald Trump says India has offered to scrap all tariffs on American products, a bold claim, though it hasn’t been confirmed by New Delhi. Speaking at a business event in Doha, Trump told the audience,
“India has offered us a deal where they’re willing to charge no tariff at all.”
So far, the Indian government hasn’t responded publicly, and there’s no official document or announcement backing Trump’s statement. The BBC has reached out to India’s commerce ministry for comment.
Trade Talks Still Ongoing
The two nations are presently engaged in negotiations to improve economic relations and reach a more comprehensive accord. As the United States and India attempt to put their past tariff disagreements behind them, Trump’s comments come at a delicate time.
In the past, Trump has frequently criticized India’s trade policy, claiming that its tariffs are among the highest in the world. He blasted Apple’s intention to increase production in India at the same event, claiming to have informed CEO Tim Cook.
“We’ve supported your plants in China for years, we don’t want you building in India. Let India take care of itself.”
Apple, meanwhile, is moving forward with its shift. The company recently announced that it is expanding its iPhone manufacturing in India and intends to manufacture iPads and Apple Watches in Vietnam. These adjustments are a component of a broader plan to lessen dependency on China.
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Tariff Wars and Deadlines
Trump levied up to 27% tariffs on a range of Indian items earlier in his term. Among other concessions, India responded by reducing tariffs on bourbon whiskey and Harley-Davidson motorcycles. India is currently under pressure to complete a trade agreement before the temporary 90-day moratorium on additional U.S. tariffs ends on July 9.
China has agreed to decrease its tariffs on several American products from 125% to 10%, while the United States recently agreed to lower its import tax on Chinese goods from 145% to 30%.
India Shifts Its Trade Strategy
Although bilateral commerce between the United States and India peaked at $190 billion, the $45 billion trade gap in India’s favor is still a source of dispute. Trump has made reducing that deficit a priority, which is why India is now reportedly offering deeper market access.
Ajay Srivastava, a New Delhi-based trade expert, suggested that India could pursue a “zero-for-zero” deal, making up to 90% of U.S. goods tariff-free on day one, excluding politically sensitive areas like agriculture and automobiles. He noted.
“But such a deal must ensure strict reciprocity,”
Both countries have set an ambitious goal to more than increase their commerce to $500 billion in the upcoming years, despite these obstacles.
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India’s Growing Openness to Trade Deals
India has recently changed its mind on accepting free trade agreements. After 16 years of discussions, it last year struck a historic $100 billion agreement with the European Free Trade Association (EFTA). India and the UK just signed a trade agreement last week that reduced tariffs on important products, including autos and whisky.
To complete a comprehensive free trade agreement later this year, negotiations are also in progress between India and the European Union.
