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India refutes Trump’s claim of zero-tariff offer on U.S. goods

India refutes Trump’s claim of zero-tariff offer on U.S. goods

India refutes Trump’s claim of zero-tariff offer on U.S. goods
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15 May 2025 8:51 PM IST

US President Donald Trump’s recent assertion that India has agreed to eliminate all tariffs on American imports has been promptly refuted by New Delhi. In comments to reporters in Doha, Trump said India was “willing to literally charge us no tariff,” but India’s foreign minister, S. Jaishankar, emphasized that talks remain ongoing and “nothing is decided till everything is.”

Jaishankar told local news agencies on Thursday that any bilateral trade agreement must be balanced and mutually advantageous. “Until that is worked out, any judgment would be premature,” he said.

Trump made his remarks during an event with business leaders in Qatar, where he also celebrated new deals between the United States and Qatar—among them, sales of Boeing aircraft. Speaking about Apple’s strategy to shift iPhone production to India, Trump revealed he had warned CEO Tim Cook against moving manufacturing to a country with “one of the highest tariffs in the world.” Yet, he claimed, India had offered a “zero-tariff” deal for U.S. goods.

India and the U.S. are racing to finalize a trade pact before Washington’s 90-day tariff pause expires on 9 July. In April, Trump imposed duties of up to 27% on certain Indian products; in response, New Delhi has already cut tariffs on select American whiskey, motorcycles and other items. Still, the U.S. runs a roughly $45 billion trade deficit with India, a gap the administration is keen to narrow.

Recent weeks have seen both Washington and Beijing roll back punitive tariffs, with U.S. levies on Chinese imports falling from 145% to 30%, and China reciprocating with cuts from 125% to 10%. Against this backdrop, India has signaled a newfound willingness to strike trade deals—inked pacts with the U.K. and the European Free Trade Association underline its evolving stance after years of protectionism.

Despite lofty ambitions—from Trump and Prime Minister Narendra Modi to more than double bilateral trade to $500 billion—India is unlikely to yield on sensitive sectors such as agriculture and automobiles. Trade experts propose a “zero-for-zero” framework—eliminating tariffs on 90% of goods from day one, with equal reciprocation—to bridge the divide, but New Delhi insists on strict reciprocity and careful calibration.

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