President Donald Trump announced Thursday that India has offered to eliminate tariffs on U.S. goods as part of a potential trade agreement, which he described as a potentially major shift in the economic relationship between the two nations.
“India is the highest — one of the highest tariff nations in the world. It’s very hard to sell into India, and they’ve offered us a deal where, basically, they’re willing to literally charge us no tariff,” Trump said during a roundtable with business leaders in Doha.
The president criticized the current tariff regime imposed by India, stating that it prevents significant trade between the two countries. “The tariff India places on U.S. goods is so high,” he said, calling it a major barrier. The White House has previously taken issue with India’s tariffs, which include a 70% duty on automobiles, 20% on certain networking equipment, and up to 80% on rice imports. The administration has also pointed to non-tariff barriers, such as complex regulatory hurdles, as additional obstacles for U.S. exporters.
A zero-tariff agreement would represent a major shift and could be a “welcome change for U.S. companies looking to export their goods to the world’s most populous country.” Trump added, “(India) have actually told us, I assume you too, (Treasury Secretary) Scott (Bessent)… that there will be no tariff, right? Would you say that’s a difference? They’re the highest, and now they’re saying no tariff.”
India’s Ministry of Commerce and Industry has not yet commented on the announcement.
As of 2024, the U.S. is India’s largest trade partner, although India ranks tenth on the list of U.S. trading partners. Despite the growing ties, the trade deficit between the two nations continues to widen — with the U.S. importing $45.7 billion more from India than it exported, according to U.S. Census Bureau data.
India is among several nations seeking to recalibrate trade ties with the U.S. amid Trump’s aggressive tariff policy. The administration has implemented a 10% baseline levy on all goods entering the country and has threatened to impose even higher “reciprocal tariffs” on specific nations. India currently faces a 26% reciprocal tariff on its exports to the U.S.
Last week, Trump secured what he called a breakthrough with Britain, agreeing on a framework that lowers certain tariffs and could open the U.K. market to more American products. Similarly, the U.S. and China announced on Monday a temporary rollback of tariffs for a 90-day period — a surprise development between the world’s two largest economies.
Trump has often singled out India in discussions of trade policy. When he first unveiled plans for reciprocal tariffs in February, he said, “They charge more tariffs than any other country.” Those remarks came just hours before he met with Indian Prime Minister Narendra Modi.
During his April 2 “Liberation Day” event in the White House Rose Garden, Trump reiterated his frustration. “India, very, very tough,” he said, recalling a direct conversation with Modi: “You’re not treating us right.”
The White House has estimated that eliminating India’s trade barriers could boost U.S. exports to the country by at least $5.3 billion annually, though it remains unclear how those projections were calculated.
While the trade deficit has grown under Trump, so too has the volume of goods traded between the two countries. U.S. imports from India primarily include pharmaceuticals, communications equipment such as smartphones, and apparel. In contrast, U.S. exports to India consist mostly of oils and gases, chemicals, and aerospace products and parts.
