India Disputes Trump’s Claim of “Zero Tariffs” Deal in Ongoing Trade Talks

 

India Disputes Trump’s Claim of “Zero Tariffs” Deal in Ongoing Trade Talks

New Delhi emphasizes that trade talks are still ongoing and responds to U.S. President Donald Trump's assertion that India is prepared to remove tariffs on American products.

U.S. President Donald Trump made a remark implying that India had consented to remove all tariffs on American imports, which India has categorically denied. No such pledge has been made, and the continuing trade talks are still unresolved, Indian Foreign Minister S. Jaishankar explained.

Jaishankar: “Nothing is decided until everything is.”

In a direct response to Trump's claim, Jaishankar told local news outlets, "Talks are still going on, and nothing is decided till everything is." His statements draw a stark contrast to Trump's earlier claims that India had promised to "literally charge us no tariff" at a business gathering in Doha.

To reach a mutually beneficial contract, trade talks between the United States and India are still in progress. Before making decisions, Jaishankar suggested patience and caution, noting that "any trade pact must be equal with advantages for both nations."

 

Trump’s Remarks Draw Scrutiny

Trump made these remarks when introducing several U.S.-Qatar economic agreements to business executives in Qatar. He criticized India for having some of the highest tariffs in the world and brought up Apple's intentions to move iPhone manufacturing there.

In addition to saying, "They [India] have agreed to charge us no tariffs," Trump claimed to have assured Apple CEO Tim Cook that construction in India was not required. Many were caught off guard by the statement, particularly considering the ongoing complexity of trade discussions between the United States and India.

 

India Pushes for Fair and Reciprocal Trade Terms

India has previously lowered tariffs on a number of American goods, including Bourbon whiskey and motorcycles. Trump has frequently cited the $45 billion trade deficit the United States has with India as justification for lowering tariffs.

Ajay Srivastava, a trade specialist, proposed that India take a "zero-for-zero" stance, proposing to eliminate tariffs on 90% of American imports right once, with the exception of delicate industries like agriculture and automobiles. However, he warned that to guarantee justice, the United States would need to make an equal commitment to such an agreement.

U.S. Tariffs Loom Over India as July Deadline Approaches

 

Trump levied up to 27% tariffs on a number of Indian commodities earlier this year. Delhi is under pressure to come to a satisfactory arrangement because a 90-day moratorium on additional rate increases is scheduled to end on July 9.

In the meantime, the United States and China have reached a new trade agreement that will drastically cut tariffs on both sides: China will reduce its duties on U.S. imports from 125% to 10%, and the United States will reduce its taxes on Chinese goods from 145% to 30%.

 

India’s Trade Strategy Shows New Flexibility

India is becoming more open to bilateral accords following years of a cautious trade strategy. India and the UK recently signed a large trade deal that lowers taxes on popular products such as cars and whisky.

After 16 years of debates, India and the European Free Trade Association (EFTA) also concluded a $100 billion free trade pact last year. In addition, discussions for an extensive free trade pact with the European Union are advancing.

 

Conclusion: Trade Talks Continue Amid Conflicting Claims

Despite Trump's confident statements, Indian officials insist that a zero-tariff deal has not yet been finalized. Finding common ground in the upcoming weeks is essential, especially in politically sensitive regions, as both countries seek to triple bilateral trade to $500 billion.

For the time being, India maintains that any trade agreement has to help both economies equally, and public statements are still premature until an agreement is reached.