US President Donald Trump announced that India has proposed eliminating all tariffs on American goods, signaling a potential breakthrough in trade negotiations. However, he tempered expectations, stating he is in no rush to finalize a deal.
In a Fox News interview on Friday, Trump highlighted India’s high trade barriers, saying, “They make it almost impossible to do business. Do you know they’re willing to cut 100 percent of their tariffs for the United States?” Yet, he added, “That’ll come soon. I’m in no rush. Everybody wants to make a deal with us.”
India’s External Affairs Minister S. Jaishankar swiftly countered Trump’s claims, emphasizing that trade talks are ongoing and complex. Speaking to reporters on Thursday, Jaishankar said, “Nothing is decided till everything is. Any trade deal has to be mutually beneficial; it has to work for both countries. Until that is done, any judgment on it would be premature.”
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This response aligns with earlier reports that India has offered to reduce tariffs significantly, including a proposal to slash duties to zero on 60% of tariff lines and provide preferential access to 90% of US imports, though sensitive sectors like agriculture remain protected.
Trump’s remarks come amid a broader push to reshape global trade dynamics. He indicated plans to set new import duty rates for trading partners within the next two to three weeks, while a 90-day pause on reciprocal tariffs, including a 26% levy on Indian goods, expires in July.
The US-India trade relationship, valued at $129 billion in 2024 with a $45.7 billion Indian surplus, is a focal point of Trump’s tariff strategy.
He also hinted at leveraging trade to broker peace, citing US efforts to mediate India-Pakistan tensions following the April 22 Pahalgam terror attack, which killed 26 people. Trump suggested expanded trade with Pakistan as part of these efforts, stating, “I’m using trade to settle scores and make peace.”
Meanwhile, Trump framed recent US-China trade de-escalation—slashing US tariffs on Chinese goods from 145% to 30% and China’s from 125% to 10%—as a strategic move to stabilize Beijing’s economy.
As India navigates these talks, it faces domestic challenges, particularly in agriculture, where tariff reductions could spark backlash. With Indian officials, including Trade Minister Piyush Goyal, set to visit the US soon, both nations aim to finalize a deal by fall 2025 to boost bilateral trade to $500 billion by 2030.
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