India-US Trade Deal: A New Era of Zero Tariffs

In a surprising announcement, US President Donald Trump revealed that India has proposed a trade agreement with the United States that would eliminate all tariffs on American products. This bold move could significantly alter the trade dynamics between the two nations.

The United States maintains its position as India's primary trading partner, with bilateral trade reaching approximately $129 billion in 2024. Currently, India enjoys a trade surplus of $45.7 billion with the US.

Strategic Moves and Negotiations

India's proposal comes during a 90-day suspension of tariff increases by Trump, aimed at securing a favorable trade agreement. "It is very hard to sell in India, and they are offering us a deal where basically they are willing to literally charge us no tariffs," Trump stated during a meeting in Doha.

According to sources, India has offered to reduce the tariff gap with the US from 13% to less than 4%, seeking exemptions from upcoming tariff hikes. Both countries are eager for a swift resolution, with India suggesting the removal of duties on 60% of tariff lines in the initial phase.

A Template for Future Deals

This development follows the US's recent 'breakthrough deal' with Britain, which may serve as a model for negotiations with other trade partners. The deal reduced British duties on US goods while maintaining America's 10% baseline tariff on British imports.