President Donald Trump of the United States has claimed that India has offered a 'Zero Tariff' on American products. In addition, he voiced his dissatisfaction with Apple's manufacturing presence in India, communicating clearly that he prefers the company not to base its manufacturing there. Talks are ongoing for a trade deal between India and the U.S., and it is expected that an agreement will be reached soon.
President Trump stated, "Selling something in India is challenging, and they are offering us a deal. To be honest, they are proposing a Zero Tariff." Trump, currently in the Middle East, made this statement in Doha, Qatar. While the U.S. had set a 26% tariff on India, they imposed a 90-day tariff suspension for all countries, including India, allowing for a temporary 10% tariff on Indian products.
Read more: India vs US Tariff: 'I Prefer You Don’t Manufacture in India, They’ll Manage Themselves,' Trump Tells Apple CEO Tim Cook
Did India Offer to Cut 60% Tariff Lines to Zero?
According to a Reuters report, India expressed willingness to reduce tariffs to zero on 60% of tariff lines. The article noted that New Delhi proposed eliminating tariffs on 60% of tariff lines during the preliminary phase of the deal, which remains under discussion.
For instance, India offered the United States preferential access to roughly 90% of imports, including reduced tariffs, meaning America could sell more goods at competitive prices in India.
Further Reading: Ceasefire Proposal by Trump Fails, Leading to U.S. President's Discomfiture After Rejected Claims
US to Sell Goods at Competitive Prices in India!
The Reuters report reveals this information, sourced from Indian government sources, underscores that America will find it easier to send products to India, enabling American goods to compete at lower prices, currently dominated by Chinese products. For instance, if the U.S. supplies ten products to India, six of them would incur zero tariffs, while the remaining would be charged under the usual tariff agreement. India anticipates increased trade, fostering long-term gains.
What Did Indian Foreign Minister Jaishankar Say about the Trade Deal?
Foreign Minister S. Jaishankar stated, "Trade talks between India and the U.S. are underway. These are complex discussions. Nothing is decided until everything is finalized. Any trade deal must be mutually beneficial and work for both countries. This is our expectation from the trade agreement. Until then, any conclusion would be premature."
