Trump Indicated India Offered a Trade Deal With 'Zero Tariffs' on US Goods
- US President Donald Trump announced that India has proposed zero tariffs on US goods
- This offer comes amid ongoing discussions about reducing tariff differentials
- Trump has previously criticized India's high import duties and trade barriers
US President Donald Trump on Thursday indicated that India has offered zero tariffs on US goods as part of attempts to agree on a new trade deal with Washington. Speaking during a business event in Qatar, Trump said that India was "willing to literally charge us no tariff" on US exports, but he did not provide details on the terms and sectors involved in the reported offer.
Trump has suggested this earlier as well, but the Government of India has remained silent over the US President's statement.
"They've made us a proposal where essentially they're offering to literally charge us no tariff. They're the highest, and now they're claiming no tariff," Trump stated in response to Apple's investment in India. The tech company recently announced it would produce all iPhones it would sell in the US, from India, in a significant manufacturing change.
India's ostensible tariff concession in the face of attempts to conclude a deal in a 90-day tariff break window announced by Trump in April. India had been subjected to a 26 per cent tariff under Trump's new trade strategy.
As previously reported by Business Standard, India was seeking to reduce the average tariff differential with the US below 4 per cent from as high as almost 13 per cent.
Trump also revealed that he had spoken to Apple chief executive Tim Cook, trying to persuade him not to increase the size of the company's manufacturing base in India. Trump said that as a result of the conversation, Apple boosted its production investment in the US instead, along with a $500 million investment in US operations.
I had a small issue with Tim Cook yesterday," Trump stated. "I don't want you constructing in India. You can construct in India if you wish to take care of India. But we need you to construct here."
Trump lashes out at India's trade restrictions
US President has been criticizing India for its large import duties, ranging from about 1 per cent on raw material and mineral fuels to as much as 100 per cent on particular agricultural items, such as dairy and meat. Another sensitive category is automobiles, with passenger car imports subject to about 70 per cent duties. Trump had announced a blanket 25 per cent duty on all auto and auto-part imports to America.
Trump has also criticised India's trade barriers during his first presidency. In 2019, his administration had even revoked India’s preferential trade status under the Generalised System of Preferences (GSP).
