Trump Says India Willing to Cut All Tariffs, But Trade Deal Not a Priority
US President Donald Trump made a bold claim on Friday, stating that India has offered to eliminate all tariffs on American goods. However, he tempered this announcement by saying he isn’t in a hurry to finalize a trade deal despite this apparent breakthrough.
If confirmed, India’s offer would be a major concession from the world’s fourth-largest economy. However, Indian External Affairs Minister S Jaishankar quickly clarified that the ongoing trade talks are complex and far from finalized.
India’s Stance on Trade Talks
Speaking to reporters on Thursday, Jaishankar emphasized the complexity of the negotiations and stressed that any trade deal must be mutually beneficial for both countries. He stated, “Between India and the US, trade talks have been going on. These are complicated negotiations. Nothing is decided till everything is. Any trade deal has to be mutually beneficial; it has to work for both countries. That would be our expectation from the trade deal. Until that is done, any judgment on it would be premature.”
Trump, in an interview with Fox News, described India as a prime example of a country with trade barriers he aims to dismantle.
He stated, “They make it almost impossible to do business. Do you know they’re willing to cut 100% of their tariffs for the United States?”.
Trump’s Mixed Signals on Deal Imminence
Despite the seemingly positive development, Trump sent mixed signals regarding the timeline for a deal. He said, “That’ll come soon. I’m in no rush. Look, everybody wants to make a deal with us.” He also added that he isn’t planning to “make deals with everybody.”
Trump’s remarks suggest that while some countries might be signaling their willingness to reset trade relationships with the US before a pause on higher import duties expires in July, others might face unilateral decisions from the US about the tariffs they’ll face.
This comes as the Trump administration seeks to reshape global trade dynamics. Earlier on Friday, Trump announced plans to set new import duty rates for trading partners over the “next two to three weeks.”
Trade Diplomacy Beyond India
Trump also hinted at the potential for expanded trade with Pakistan, India’s rival. He previously stated that this was a factor in the US effort to broker a ceasefire understanding between the two countries following border disputes.
Trump said, “I’m using trade to settle scores and make peace.”
The US has also been trying to de-escalate a trade fight with China. After recent talks, the US reduced its tariff rate on China to 30% from 145%, and Beijing lowered its tariff levels from 125% to 10%. Both countries are looking towards further discussions.
Trump claimed, “If I didn’t do that deal with China, I think China would have broken apart.”
