U.S. President Donald Trump recently suggested that India has offered the United States a Zero Tariff deal. However, his stance seems to have shifted. He recently reiterated his position on tariffs, stating there's no rush to finalize this deal.
In his Fox News interview, Trump claimed India proposed to waive all tariffs on American goods. He praised this as a monumental trade triumph, noting that they make trading nearly impossible. Did you know they’re ready to cut their tariffs by 100% for America?
But I am in no hurry for this deal. India hasn't officially mentioned a Zero Tariff. As such, Trump's claim seems a bit vague.
Everyone Wants to Strike a Deal - Trump
Despite claiming zero tariffs, Trump shows no rush for the deal. He further stated he has no 'urgency' to formalize any agreement. But it will happen soon. ‘Everyone wants to strike a deal with us,’ he said, indicating that agreements with other countries are very close.
India’s Statement on Zero Tariff
Shortly after, India's clarification emerged. Speaking with reporters, Foreign Minister S. Jaishankar clarified that trade talks with the U.S. continue, are complex, and are not yet final. Jaishankar stated that discussions are ongoing, complex, and until all is agreed, nothing is finalized. Any trade deal should be mutually beneficial, effective for both nations. Until that happens, decisions would be premature.
Moody’s Downgrades U.S. Rating
Trump's trade enthusiasm comes at a time when the U.S. faces fiscal questions. Moody’s downgraded the U.S. sovereign credit rating from its top Aaa to Aa1, citing rising debt, interest costs, fiscal deficit, and political inertia.
Analysts warn this could increase U.S. borrowing costs, unsettle financial markets, and undermine global confidence in the U.S. as the world's financial sanctuary, even as Trump looks outward for trade victories.
