Donald Trump announces India will drop tariffs on US imports to ‘nothing’
Donald Trump announces India will drop tariffs on US imports to ‘nothing’
M.U.H
07/05/202527
US President Donald Trump, amid ongoing negotiations for a bilateral trade deal with India, revealed on Tuesday (May 6) that India has agreed to reduce its tariffs on imports from the United States to "nothing."
In a White House media interaction, alongside Canadian Prime Minister Mark Carney, Trump emphasised the significance of this agreement, particularly in light of India’s historically high tariffs.
Trump’s stance on tariffs
“India has one of the highest tariffs in the world. We are not going to put up with that, they have agreed already to drop it, drop it to nothing. They have already agreed. They wouldn’t have done for anybody else, but me,” Trump stated.
India offers zero tariffs on key US imports: Report
As per a previous report in Bloomberg, India has reportedly proposed eliminating tariffs on select US imports — including steel, auto components, and pharmaceuticals — as part of ongoing bilateral trade talks with Washington. The zero-tariff offer would apply on a reciprocal basis and be limited to a specific volume of imports.
Limited tariff relief, with thresholds
Under the reported proposal, India would allow duty-free imports of certain industrial goods from the United States, but only up to a fixed quota. Any imports beyond the agreed threshold would continue to attract standard duties.
This conditional offer is seen as part of India’s efforts to accelerate progress on a long-awaited bilateral trade agreement with the United States.
The proposal was reportedly made by Indian trade officials who travelled to Washington in late April. Their visit was aimed at fast-tracking negotiations on the trade deal, which seeks to significantly boost bilateral trade and investment.
According to the news report which cited sources familiar with the discussions, both sides are now eyeing a formal agreement by autumn this year.
US-India trade deal: A step toward $500 billion in trade
The US and India have been negotiating a trade deal, with the goal of boosting bilateral trade from over $190 billion to $500 billion by 2030. This ambitious goal was outlined during Indian Prime Minister Narendra Modi’s meeting with Trump in Washington earlier this year.
The bilateral trade agreement (BTA), which has been a focal point of discussions, aims to strengthen economic ties and facilitate trade flows. Both nations are working to finalise an interim trade agreement before the 90-day pause on the reciprocal tariffs expires in early July.
Timeline for agreement
The pause on the 26% reciprocal tariffs, which had initially been imposed by Trump on April 2, is set to expire in early July. Under this 90-day reprieve, the tariffs on imports from India have been reduced to 10 percent, as part of broader trade negotiations with countries, excluding China.
Both countries are working toward an interim understanding that would lay the foundation for a final deal. The outcome of these discussions could significantly reshape trade relations between the US and India, with the potential for even greater economic collaboration in the future.
