Trump says India offered a trade deal with 'zero tariffs' on US goods

Trump claimed that India was offering 'no tariffs' on US exports, but did not elaborate on the trade deal

US President Donald Trump on Thursday said that India has proposed zero tariffs on American goods as part of efforts to strike a new trade agreement with Washington. Speaking at a business gathering in Qatar, Trump claimed that India was “willing to literally charge us no tariff” on US exports, though he did not elaborate on the terms or sectors covered by the reported offer.''

 

Trump has floated this idea before, however, the Government of India has not made any comments on the US President's remarks.

 

“They’ve offered us a deal where basically they’re willing to literally charge us no tariff... They’re the highest, and now they’re saying no tariff,” Trump said while commenting on Apple's investment in India. The tech giant recently announced plans to manufacture all iPhones that will be sold in the US, from India, marking a major manufacturing shift. 

 

India's apparent tariff concession comes amid efforts to secure a deal within a 90-day tariff pause window, which Trump had announced in April. India had been hit with a 26 per cent tariff under Trump’s new trade policy.

 

As earlier reported by Business Standard, India was looking to narrow the average tariff differential with the US to under 4 per cent from nearly 13 per cent.

 

Trump asks Tim Cook not to expand iPhone manufacturing in India

Trump also said he had spoken with Apple CEO Tim Cook, urging him not to expand the company’s manufacturing footprint in India. According to Trump, the discussion led Apple to increase its production investment in the United States instead, in addition to a $500 million investment in US operations.

 

“I had a little problem with Tim Cook yesterday,” Trump said. “I don’t want you building in India. You can build in India if you want to take care of India... But we want you to build here.”

 

Trump criticises India's trade barriers

The US President has long criticised India for its high import duties, which can range from around 1 per cent for raw materials and mineral fuels to as high as 100 per cent on specific agricultural products, including dairy and meats. Automobiles are another sensitive area, with passenger vehicle imports facing duties of about 70 per cent. Trump had announced a blanket 25 per cent tax on all auto and auto-part imports to the US.

 

Trump has also criticised India's trade barriers during his first presidency. In 2019, his administration had even revoked India’s preferential trade status under the Generalised System of Preferences (GSP).