President Donald Trump has revealed that India has proposed eliminating tariffs on American goods as part of ongoing trade discussions aimed at preventing increased import taxes. This announcement came during an event with business leaders in Qatar, where Trump shared insights into the latest developments in U.S.-India trade relations.
Speaking at the event on Thursday, Trump stated, “They have offered us a deal where basically they are willing to literally charge us no tariff.” While he did not provide any additional details about India’s proposal, the Indian Ministry of Commerce and Industry has yet to respond to requests for clarification.
India’s External Affairs Minister Subrahmanyam Jaishankar later commented on the matter, emphasizing that the talks are still underway. He advised against drawing conclusions until an equitable agreement is reached, saying that “any judgment on it would be premature” until a “mutually beneficial” deal is finalized, according to local reports.
The backdrop to these developments includes Prime Minister Narendra Modi’s visit to the White House in February, which laid the groundwork for a series of trade negotiations between the two nations. India was among the earliest countries to engage in trade talks with the Trump administration following that visit. Both sides had agreed to complete the first phase of a bilateral trade agreement by the fall. To further advance these discussions, India’s trade minister is scheduled to meet with U.S. officials between May 17 and 20.
Trump’s recent comments follow escalating tensions after India threatened to impose retaliatory tariffs in response to the United States increasing duties on steel and aluminum. This suggested a firmer stance by India as it continues negotiations with Washington. Despite the friction, sources familiar with the discussions have confirmed that the trade talks are progressing on schedule.
In New Delhi, analysts interpreted Trump’s remarks in two different ways. Some saw them as a signal that a deal is nearing completion, while others considered it a negotiation tactic aimed at exerting pressure on Indian officials.
Ajay Srivastava, founder of the Global Trade Research Institute in New Delhi, commented, “An India–US trade deal may be on the cards.” He also stressed the importance of fairness in the agreement, stating, “But the deal must ensure strict reciprocity, with both sides eliminating tariffs equally.”
Following Trump’s remarks, the market response in India was relatively calm. The Indian rupee regained some of its losses, and the benchmark NSE Nifty 50 index rose by 1.7% by 2 p.m. local time.
Trump has been vocal about the trade imbalance between India and the U.S. since returning to the White House, describing it as heavily tilted in India’s favor. Last year, the trade gap stood at approximately $47 billion. Trump has repeatedly criticized India for its high tariffs, arguing that they harm American businesses. He has threatened to introduce “reciprocal” tariffs of 26% on Indian goods, although those proposed tariffs have been temporarily postponed until early July.
India, in an effort to address Trump’s concerns, has implemented a series of policy changes. These include revising its tariff structure to lower import duties on key American products such as bourbon whiskey and Harley-Davidson motorcycles. These measures aim to demonstrate India’s willingness to reach a compromise.
Furthermore, Bloomberg News recently reported that New Delhi has suggested applying zero tariffs on selected goods, including auto components and pharmaceuticals. This would apply to a limited volume of imports and would be reciprocated by the United States.
Despite the cordial relationship between Trump and Modi, which has often been highlighted in public appearances and diplomatic meetings, some tensions have emerged. Indian officials have expressed irritation at Trump’s claim that he used trade as leverage to facilitate a ceasefire between India and Pakistan following a four-day military confrontation. Indian authorities have disputed that assertion, indicating that trade and diplomacy should be treated separately.
In another development that could add complexity to the ongoing trade talks, Trump disclosed that he had spoken with Apple Inc. CEO Tim Cook. During their conversation, Trump said he urged Cook not to expand Apple’s manufacturing operations in India.
“I said I don’t want you building in India,” Trump recounted about his conversation with the Apple chief. He further added, “India can take care of themselves, they are doing very well.”
According to Trump, the outcome of this exchange was Apple’s decision to increase its production capacity within the United States. “Apple will be upping their production in the United States,” he said.
These remarks suggest that Trump remains committed to reshoring manufacturing to the U.S., even as he attempts to smooth trade relations with India. The administration appears focused on both correcting the trade deficit and strengthening domestic industry, even if it means discouraging American companies from investing abroad.
India, on the other hand, has been navigating a delicate balance. It is attempting to satisfy American demands without appearing to capitulate too easily, especially as it seeks to maintain economic independence and strategic autonomy. The negotiations now hinge on whether the two sides can reach a consensus that benefits both economies without provoking further political or economic strain.
While no formal deal has been announced yet, signs of potential compromise are emerging. India’s willingness to adjust its tariff policies and the United States’ decision to delay retaliatory measures hint that both nations are interested in resolving the trade impasse amicably. However, analysts caution that much depends on the specifics of any final agreement.
Srivastava’s call for strict reciprocity underscores a key concern for Indian negotiators: ensuring that the United States does not gain disproportionately from the deal. Equal concessions on both sides will be necessary to ensure domestic support and long-term viability of any trade pact.
With the Indian trade minister set to visit the U.S. soon, the next few weeks could prove decisive in determining whether the two countries can move beyond threats and tariff hikes to forge a stable economic partnership. Until then, both sides are expected to continue their careful maneuvering, mindful of both political optics and economic realities.
The outcome of these talks will not only affect bilateral trade but could also shape broader geopolitical alignments, especially as the U.S. and India look to counterbalance other major global players. A successful trade deal would mark a significant milestone in the evolving relationship between the world’s largest and oldest democracies.