India-US trade deal: US President Donald Trump on Thursday claimed that India had put forward a proposal for a trade agreement with “no tariffs” or ‘zero tariffs”. Trump said that India has proposed eliminating import duties on American products. Trump said that Indian authorities have put forward a proposition that would essentially remove all import taxes on US merchandise.The Indian government aims to secure a trade agreement with America during the 90-day suspension declared by Trump on April 9 regarding tariff increases for significant trading partners, which had incorporated a 26% duty on India.“It is very hard to sell in India, and they are offering us a deal where basically they are willing to literally charge us no tariffs,” Trump said in a meeting with executives in Doha, according to a Reuters report.The United States maintains its position as India’s primary trading partner, with the total bilateral trade reaching approximately $129 billion in 2024. Currently, India holds a favourable trade position, maintaining a surplus of $45.7 billion in its trade dealings with the United States.Last week, Reuters reported that India has offered to lower its tariff gap with the US to less than 4% from the present 13%, aiming to gain exemption from Trump’s current and upcoming tariff hikes, according to two sources close to the bilateral negotiations. Both nations are striving for a quick resolution.Following the Trump administration’s recent ‘breakthrough deal’ with Britain, which saw reduced British duties on US goods while maintaining America’s 10% baseline tariff on British imports, a potential template has emerged for talks with other trade partners.According to two Indian government officials directly involved in the talks, New Delhi has suggested removing duties on 60% of tariff lines in the first stage of negotiations, as disclosed to Reuters.
