Is India Really Dropping Tariffs to ‘Nothing’?
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Synopsis
US President Donald Trump has announced that India is set to eliminate tariffs on US imports, potentially marking a significant shift in trade relations. This development raises questions about the future of US-India trade agreements and their implications on global commerce. Stay tuned for what this could mean for businesses on both sides.
Key Takeaways
- India is poised to eliminate tariffs on imports from the US.
- US-India negotiations may lead to significant trade agreements.
- President Trump emphasizes the need for market access.
- Details on specific goods affected remain undisclosed.
- Future deals could transform economic relations between both countries.
Washington, May 6 (NationPress) US President Donald Trump announced on Tuesday that India has either already eliminated or is set to eliminate its tariffs on imports from the US to “nothing”. However, no specifics regarding the goods and sectors impacted were provided.
The US and India have been engaged in discussions for a trade agreement that officials from the Trump administration have indicated could be among the initial deals to be finalized in the ongoing negotiations with various trade partners.
Highlighting the US's key objectives in these talks - the reduction of tariffs or the provision of market access, President Trump stated, “India, as an example, has one of the highest tariffs in the world. We’re not going to put up with that. And they’ve agreed already to drop it.”
President Trump added, “They’ll drop it to nothing,” during a media briefing at the White House alongside Canada’s Mark Carney. “They've already agreed.”
While specifics about the India-US trade negotiations remain scarce, President Trump has consistently expressed his demands since his first term. The two nations were on the brink of finalizing a trade deal during his visit to India in February 2019, but discussions fell apart and were not revisited during President Joe Biden’s administration.
Negotiations resumed leading up to and following President Trump’s announcement of extensive tariffs on nearly all of the US's trading partners. Imports from India were initially taxed at 26 percent, which has since been reduced to 10 percent, a rate that President Trump announced for all countries in a 90-day suspension, aside from China, which faces a 145 percent tariff on its goods entering the US.
During a congressional hearing on Tuesday, Scott Bessent, the treasury secretary, mentioned that the US is currently negotiating with 17 of its 18 primary trading partners - China being the 18th - and anticipates that deals will be revealed shortly.
He previously stated that he expects the agreement with India to be among the first to be disclosed.
Point of View
It is crucial to approach this announcement with a balanced perspective. The potential removal of tariffs could foster stronger economic ties between the US and India, benefiting both nations. However, we must remain vigilant about the broader implications of such agreements on global trade dynamics.
NationPress
24/06/2025
Frequently Asked Questions
What tariffs is India dropping?
India is reportedly dropping tariffs on US imports to 'nothing', though specific details on affected goods are still unclear.
Why are US-India trade talks significant?
These talks are crucial as they could reshape trade relations between two major economies and impact global trade patterns.
What was the previous tariff rate from India to the US?
Imports from India were previously taxed at 26 percent, which has been reduced to 10 percent.
When were the last significant trade talks held?
Significant trade talks were previously held during President Trump's visit to India in February 2019.
What can we expect from future trade deals?
Future trade deals may lead to increased market access and reduced tariffs, benefiting both US and Indian economies.
