India has offered the US a zero-tariff deal on steel, automobile components, and pharmaceutical products—up to a certain limit—as part of ongoing trade talks. The offer, reportedly made by Indian negotiators during a visit to Washington in late April, is aimed at unlocking progress on a bilateral trade agreement that both sides hope to finalise by this autumn.
Once that import quota is crossed, the usual customs duties would apply. It’s a sort of tariff holiday with a ceiling, and only for specific goods.
Both countries are under pressure to make some headway before the 90-day pause on President Donald Trump's tit-for-tat tariff policies expires. According to people familiar with the talks, the idea is to clinch at least a partial deal covering a few sectors. A larger agreement could still be some way off.
With the US economy facing a slowdown and elections on the horizon, Trump signalled on 4 May that some trade agreements could be inked "as soon as this week". India, along with South Korea and Japan, seems to be in the fast lane—each hoping to strike an interim deal and avoid any fresh tariff shocks.
While tariff cuts are up for discussion, Washington has flagged another concern: India’s Quality Control Orders (QCOs). These are mandatory standards that imported and domestic goods must comply with before they’re sold in India.
The US views these regulations as non-tariff trade barriers—technical rules that make it harder for foreign goods to enter the Indian market. Critics have called the QCOs opaque and overly rigid, although India argues they are essential for consumer safety and fair competition
India’s Ministry of Commerce and Industry has not issued a public response on the proposals or the QCO issue. But trade watchers believe that resolving this could be key to unlocking further concessions from the US side.
The specifics of India’s offer—including how large the zero-tariff quotas would be—remain unclear. It's also not certain whether Washington will bite.
