Big Deal? Trump Says India Will Drop All Tariffs on US Goods
Trump Claims India’s Tariff Offer
US President Donald Trump made a bold claim this week, asserting that India has offered to eliminate all tariffs on goods imported from the United States. He made this announcement at an event in Doha, Qatar, alongside business leaders.
Trump stated, “They [India] have offered us a deal where basically they have agreed to charge us literally no tariffs.”
According to Trump, he told Apple CEO Tim Cook that he didn’t want Apple to build iPhones in India due to its high import tariffs. He claimed that this prompted India’s offer to completely waive tariffs on US goods.
No Details, No Confirmation
However, there’s been no official confirmation from the Indian government regarding this alleged deal. The BBC has reached out to India’s commerce ministry for comment, but nothing concrete has been released.
Trump’s announcement came as part of a broader discussion about US-India trade relations. The two countries are currently engaged in negotiations for a comprehensive trade agreement.
Background on US-India Trade
The US has long sought to reduce its trade deficit with India, which currently stands at $45 billion. Trump has repeatedly blamed India’s high tariffs for this deficit. In April, the US imposed tariffs of up to 27% on certain Indian goods.
India, however, has been showing increasing openness to trade agreements in recent years. It recently inked a trade deal with the UK and a $100 billion agreement with the European Free Trade Association (EFTA). It is also actively pursuing a free trade agreement with the European Union.
Analysts Weigh In
Ajay Srivastava, a Delhi-based trade expert, suggests that India might offer to make 90% of US exports tariff-free from the outset, using a “zero-for-zero” approach. This would involve eliminating tariffs on all goods except autos and agriculture. However, he stresses the importance of strict reciprocity, with both sides eliminating tariffs equally.
Srivastava also notes that while Trump and Indian Prime Minister Narendra Modi have set a target of doubling bilateral trade to $500 billion, India is unlikely to make concessions in politically sensitive sectors like agriculture.
Looking Ahead
The potential trade deal between the US and India remains a topic of much speculation. It is unclear whether the alleged tariff offer will materialize into a concrete agreement. However, the ongoing negotiations highlight the growing economic ties between the two nations.
