India Set to Drop All Tariffs on U.S. Goods? Trump Says a No-Tax Deal Is on the Table

President Donald Trump has claimed that India is willing to remove all tariffs on U.S. products as part of an ongoing effort to finalize a trade agreement between the two nations. Speaking at a business event in Qatar, Trump told attendees that India “offered us a deal where basically they are willing to literally charge us no tariff.”

While the statement has sparked fresh speculation about a potential breakthrough in trade talks, there has been no official confirmation from the Indian government. India’s External Affairs Minister, Subrahmanyam Jaishankar, later told reporters that discussions were still underway and cautioned that it was “too early” to make any final judgments until a mutually agreeable deal is reached.

Trade Talks Still Ongoing

Negotiations between the U.S. and India picked up momentum after Prime Minister Narendra Modi’s visit to the White House earlier this year. Both countries agreed to work toward the first phase of a trade agreement by the fall. India’s trade minister is scheduled to travel to Washington from May 17 to 20 for further talks.

India had previously threatened to impose retaliatory tariffs in response to U.S. duties on steel and aluminum. Trump’s new comments suggest that India may be softening its stance in the interest of moving the talks forward.

What’s on the Table?

According to earlier reports, India has already made efforts to ease tensions by cutting tariffs on certain high-profile American goods—like bourbon whiskey and Harley-Davidson motorcycles. New Delhi has also proposed a zero-tariff structure on select goods such as auto components and pharmaceuticals, on a reciprocal basis, up to a specific volume.

Trump’s claim that India is ready to drop tariffs entirely would represent a major shift. But it’s unclear whether this would apply to all U.S. goods or only specific categories. Indian officials have remained tight-lipped on the details.

Analysts Weigh In

Some trade analysts believe Trump’s announcement may be a negotiating tactic to put public pressure on India. Ajay Srivastava, founder of the Global Trade Research Institute in New Delhi, said, “It could mean we’re close to a deal, or it could just be political posturing. Either way, the deal needs to be balanced.”

India has long faced criticism from the U.S. over its trade surplus and relatively high tariffs. Trump, in particular, has pushed for “reciprocal” trade terms and even threatened to impose steep tariffs on Indian goods—though those are currently paused.

Strain Behind the Scenes

While Trump and Modi have often praised each other publicly, Indian officials have expressed discomfort with some of Trump’s past comments—especially claims that he used trade talks to influence peace negotiations between India and Pakistan. Indian authorities have dismissed those assertions.

Adding another wrinkle, Trump also claimed during his remarks that he told Apple CEO Tim Cook not to expand manufacturing in India. According to Trump, he told Cook, “India can take care of themselves, they are doing very well,” and encouraged him to focus on U.S. production instead. Apple has not commented on the exchange.

Market Reaction

Markets appeared largely unaffected by the news. The Indian rupee regained some ground, and the benchmark NSE Nifty 50 index rose by 1.7% by mid-afternoon.

For now, all eyes are on the upcoming trade meetings in Washington. Whether Trump’s comments indicate a major development—or simply more tough talk—remains to be seen. What is clear is that both sides are under pressure to reach a deal that benefits their economies and avoids escalating trade tensions.

Also Read: US–China Tariff Talks Enter Second Day Without Breakthrough as Trump Claims ‘Great Progress’