Trump Claims India Ready to Scrap All US Tariffs; New Delhi Stresses Mutual Benefit
US President Donald Trump asserted that India has offered to eliminate all tariffs on American goods, hinting at a potential trade deal. He cited India as a high-tariff nation. However, Indian External Affairs Minister S. Jaishankar emphasized that any trade agreement must be mutually beneficial, indicating ongoing negotiations and India's cautious approach. Trump suggested he is not in a rush to finalize the deal despite the apparent breakthrough.
Unpacked:
Key issues include high Indian tariffs on American goods, US concerns about market access, non-tariff barriers, and a sizeable US trade deficit with India. Both sides are negotiating to reduce tariffs and address these trade barriers for a mutually beneficial agreement.
Negotiations are accelerating, with both countries aiming to conclude the first phase of a trade agreement by early July. A high-level Indian delegation will travel to Washington soon for talks, and there is optimism about meeting this timeline.
India emphasizes that any agreement should fairly address both nations' economic interests, not just eliminate tariffs on US goods. This approach ensures that India’s exports, industries, and broader economic concerns are also protected in the final agreement.
Yes. In April, the US implemented a discounted reciprocal tariff on India and later paused further tariffs on Indian exports for 90 days, a goodwill gesture to foster negotiations. India has also reduced some tariffs as part of ongoing talks.