Donald Trump has stated that India is prepared to eliminate 100% of its tariffs on goods from the United States, though he is in "no hurry" to finalize a trade agreement. This announcement follows ongoing trade discussions between the two nations, with both sides seeking to reduce trade barriers and strengthen economic ties.
Trump made the remarks in an interview with Fox News, emphasizing his determination to dismantle trade barriers with countries like India. "They make it almost impossible to do business," Trump said, referring to India's existing tariff structure. He then added, "Do you know they're willing to cut 100% of their tariffs for the United States?". When questioned about the timeline for a deal, Trump responded, "That'll come soon. I'm in no rush. Look, everybody wants to make a deal with us". He also mentioned he is not planning to "make deals with everybody".
However, India's Foreign Minister S Jaishankar has disputed Trump's claim that India has offered to drop all tariffs on US goods. In a statement to news agencies, Jaishankar countered Trump's statement, clarifying that the negotiations are still in progress and "nothing is decided till everything is". He added that any trade deal must be mutually beneficial and work for both countries, stating that any judgment before a final agreement would be premature.
Despite the contrasting statements, both countries have been engaged in trade negotiations to resolve tariff and market access issues. India has already made some concessions, including lowering import duties on goods like bourbon whiskey and Harley-Davidson motorcycles. New Delhi has also proposed zero tariffs on car parts on a reciprocal basis, up to a certain amount. According to a Reuters report on May 9, India has proposed to reduce its average tariff differential with the US from around 13% to under 4%. This would involve reducing duties to zero on 60% of US imports in the first phase and offering preferential access to nearly 90% of the merchandise India imports from the US.
The US is currently India's largest trading partner, with bilateral trade totaling $129 billion in 2024. However, the US has a goods trade deficit of $45.7 billion with India. Trump has often criticized India's high tariffs, which average around 17%, compared to the US average of 3.3%. In April, the US suspended additional tariffs on Indian exports for a 90-day period until July 9.
Earlier this month, Trump had claimed that India "agreed" to drop its high tariffs "to nothing". He has previously referred to India as the "tariff king" and a "big abuser". On April 2, the US imposed a 10% tariff on all countries and individualized reciprocal higher tariffs on nations with which the U.S. has the largest trade deficits. On April 9, he announced a 90-day suspension of these tariffs until July 9 this year, except for those on China and Hong Kong, as about 75 countries approached America for trade deals.
These developments occur as India seeks to finalize a trade deal with the US within the 90-day pause on reciprocal tariffs. India and the US are likely to sign their long-awaited bilateral trade agreement before July 8, when the 90-day pause on the US's reciprocal tariff action expires. A high-level Indian delegation, led by commerce and industry minister Piyush Goyal, is expected to meet with US officials for further negotiations.
