US President Donald Trump has claimed that India has agreed to eliminate tariffs on US imports, stating that Indian tariffs will be “dropped to nothing” as a result of ongoing trade negotiations between the two countries.

Trump made this assertion during a media interaction at the White House alongside Canadian Prime Minister Mark Carney, emphasising that India has some of the highest tariffs in the world and that the US would no longer tolerate such barriers.

He did not, however, provide specifics on which goods or sectors would be affected, nor did he detail when these changes would take effect or whether they are part of a larger, formal trade agreement.

Negotiations for a bilateral trade agreement (BTA) between the US and India have been underway for several years, with both sides seeking to address long-standing issues related to tariff and non-tariff barriers.

The Trump administration has prioritised reducing India’s tariffs and increasing US market access, while India has reportedly offered zero-for-zero tariff arrangements on select products such as steel, auto components, and pharmaceuticals, limited to specific import volumes and based on reciprocity. 

These proposals are seen as efforts to achieve an interim agreement before the expiration of a 90-day pause on reciprocal tariffs imposed by the US, which currently stands at a flat 10% for most countries except China, whose goods are subject to a 145% levy.

While Trump has framed the apparent agreement as a significant victory for US trade policy, there has been no official confirmation from Indian government sources regarding a commitment to eliminate tariffs entirely. The US Treasury Secretary, Scott Bessent, has indicated that the US is in active negotiations with 17 of its 18 major trading partners and expects trade deals to be announced soon, with India potentially among the first to finalise an agreement.

The broader context includes India’s recent trade deals with other partners, such as the UK, where India agreed to reduce tariffs on a range of British products, highlighting New Delhi’s willingness to engage in reciprocal tariff reductions with key trading partners. The US-India trade agreement, if concluded as described by Trump, would mark a significant shift in bilateral economic relations, potentially more than doubling trade volumes by 2030 from current levels.

While President Trump has publicly claimed that India will drop tariffs on US imports to zero, concrete details and official confirmation from India are still pending. The ongoing negotiations focus on sector-specific tariff reductions and reciprocal arrangements, with both sides aiming for a mutually beneficial agreement in the near future.

Agencies