India Rejects Trump’s Claim of Zero-Tariff Offer

The statement of President Donald Trump that India would remove all import tariffs on U.S. products was immediately denied by Foreign Minister S Jaishankar who explained that negotiations were still ongoing and no final agreement had been reached. Trump described the situation during a speech in Doha by pointing out that Apple moved its iPhone manufacturing operations to India because of his warning to CEO Tim Cook that India maintained high tariffs of 27% on imported goods since April. The minister insisted that any successful deal must create benefits for both parties while warning against hasty judgments. The 90-day trade deadline for India to face higher US tariffs drives India to seek equal benefits in exchange for the proposed elimination of 90% of US export tariffs except autos and agriculture according to trade expert Ajay Srivastava. The bilateral trade relationship that used to amount to $190 billion now presents a $45 billion US trade deficit which President Trump wants to reduce. India continues to be cautious in its trade relationships because the country maintains sensitivity towards agriculture despite having established pacts with the UK and EFTA. The ongoing India-China trade negotiations aim to increase trade volume to $500 billion in contrast to Trump’s current Chinese tariff rates which have been lowered to 30% and 10% since their previous agreement. India maintains its strategic approach through political and economic considerations while it seeks to advance international trade relationships.