Saturday, March 29, 2025
US President Donald Trump recently announced that India offers Zero Tariffs US Goods on goods imported from the United States. This offer marks a potential turning point in trade relations between the two countries. Speaking at a business event in Doha, Trump highlighted India’s willingness to remove all tariffs on American products, which could greatly benefit US exporters and boost economic cooperation.
The possibility of India willing to charge no tariffs is particularly important for American companies like Apple, which is shifting much of its iPhone production to India. Until now, India’s high tariffs have posed challenges for US manufacturers moving supply chains out of China. Trump noted that this new deal could encourage more US firms to invest in India, creating jobs and expanding bilateral trade.
While India Zero Tariffs US Goods could benefit many sectors, some areas like agriculture and automobiles remain sensitive due to political and economic factors. Trade experts warn that any agreement must ensure fairness, with both countries eliminating tariffs in a balanced manner. The US is keen to reduce its $45 billion trade deficit with India and hopes this move will help.
India’s commerce ministry has yet to comment officially, but ongoing talks indicate progress. If India willing to charge no tariffs turns into a formal agreement, it could be a major breakthrough after years of trade tensions. The deal would help meet ambitious goals set by Trump and Prime Minister Narendra Modi to more than double trade between the two nations.
India has recently become more open to trade deals. It signed a pact with the UK to reduce tariffs on whisky and automobiles and reached a $100 billion free trade agreement with the European Free Trade Association last year. These steps show India’s growing willingness to engage in global trade agreements, setting the stage for potential US-India tariff reductions.
