US Seeks Zero Tariffs on Nearly All Goods in Trade Talks with India

The United States has reportedly urged India to eliminate tariffs on nearly all goods, excluding agricultural products, according to a CNBC-TV18 report on March 6. If India agrees, it would mean giving up key trade protections without receiving any reciprocal benefits. This request comes amid growing trade tensions, as President Donald Trump continues to criticize India’s "unfair" trade policies. He has accused India of maintaining high tariffs on American goods, impacting US exports. Recently, Trump announced that reciprocal tariffs will take effect on April 2, making it clear that India will not receive any preferential treatment. The move signals tougher US trade negotiations, potentially affecting key Indian industries, including manufacturing and technology.

During Prime Minister Narendra Modi’s visit to the White House last month, Trump specifically pointed out India's high tariffs as a problem.

India-US Trade Talks: Tariff Standoff Intensifies

Commerce Minister Piyush Goyal has been in discussions with the US Trade Representative and Commerce Secretary to find a way forward, but negotiations remain tense. Washington is holding firm, insisting that India drop its tariffs without offering much in return, according to sources.

A major sticking point is the auto sector, with reports suggesting India is unwilling to reduce import duties on foreign cars to zero immediately. However, the government is considering further tariff reductions and has held discussions with domestic automakers, though zero duty remains off the table.

With the April 2 deadline for US reciprocal tariffs looming, pressure is mounting. However, India isn’t rushing into a decision, and whether a compromise can be reached before the new tariffs take effect remains uncertain.