London
CNN
—
President Donald Trump mentioned on Thursday that India has provided to remove tariffs on the USA as a part of a possible commerce deal. If that involves move, it might symbolize a major breakthrough with an more and more vital US buying and selling accomplice.
“India is the very best — one of many highest tariff nations on this planet. It’s very exhausting to promote into India, they usually’ve provided us a deal the place, principally, they’re keen to actually cost us no tariff,” Trump mentioned throughout a roundtable with enterprise leaders in Doha, Qatar.
The president mentioned the tariff India locations on US items is “so excessive” that it prevents a lot enterprise from happening between the 2 nations. The White Home has lengthy criticized India’s excessive tariffs, together with 70% on autos, 20% on some networking tools, 80% on rice imports. It additionally has chastised India for its non-tariff commerce boundaries, together with burdensome regulatory necessities for importers.
So a zero tariff — if that’s the truth is what India is providing — can be a welcome change for US firms seeking to export their items to the world’s most populous nation.
“(India) have truly informed us, I assume you too, (Treasury Secretary) Scott (Bessent)… that there shall be no tariff, proper? Would you say that’s a distinction? They’re the very best, and now they’re saying no tariff,” Trump mentioned.
India’s Ministry of Commerce and Trade didn’t instantly reply to a request for remark.
The US is India’s largest commerce accomplice as of 2024, but India ranks tenth within the record of US buying and selling companions for a similar 12 months. The commerce deficit between the US and India has been widening, with the US importing $45.7 billion extra from India than it exported there in 2024, in line with knowledge from the US Census Bureau.
India is one in every of a number of nations or buying and selling blocks making an attempt to strike offers with the US after Trump’s sweeping set of tariffs has upended world commerce.
Trump has imposed a baseline 10% levy on all items imported into the US, and threatened to slap so-called “reciprocal tariffs” at nonetheless greater charges on nations in early July. India faces a 26% “reciprocal tariff” on its items arriving into the US.
Final week, Trump scored the primary huge win in his commerce warfare — a framework for future commerce negotiations with Britain that lowers some tariffs on London and probably opens up the UK market to extra American items.
And, on Monday, the US and China to drastically roll again tariffs on one another’s items for an preliminary 90-day interval in a shock breakthrough between the world’s two richest nations.
When Trump initially introduced plans in February to unveil a package deal of reciprocal tariffs, he singled out India a number of instances. Specifically, the administration has taken subject with India’s value-added and digital companies taxes in addition to the rising items commerce deficit.
“They cost extra tariffs than another nation,” Trump mentioned on February 13. The feedback got here hours earlier than he met with India’s Prime Minister Narendra Modi.
Trump additionally spoke about India throughout his Rose Backyard “Liberation Day” occasion on April 2. “India, very, very powerful,” Trump mentioned. He additionally talked about he informed Modi when he met with him, “You’re not treating us proper.”
The White Home final month estimated that US exports to India would improve by not less than $5.3 billion yearly if India dropped its commerce boundaries — nevertheless it’s unclear how the White Home arrived at these figures.
The products commerce deficit the US runs with India has almost doubled since Trump’s first time period, although this occurred as each nations roughly doubled the quantity of imported items from each other.
The highest items the US obtained from India final 12 months included prescribed drugs; communications tools, equivalent to smartphones; and attire. The highest American exports to India have been numerous oils and gases, chemical substances and aerospace merchandise and elements.
