
US President Donald Trump’s assertion that India has agreed to eliminate all tariffs on American imports has been swiftly challenged by New Delhi.
External Affairs Minister S. Jaishankar told news agencies that trade discussions are ongoing and that “nothing is decided till everything is”. His remarks directly contradict Trump’s earlier comments to reporters, in which the Trump claimed India had “offered us a deal where basically they are willing to literally charge us no tariff”.
India and the United States are currently negotiating a trade agreement.
Speaking on Thursday, Jaishankar said any deal must be mutually beneficial. “That would be our expectation from the trade deal. Until that is done, any judgement on it would be premature,” he said.
Trump made his remarks during an event with business leaders in Doha, where he also announced a series of agreements between the US and Qatar, including a deal for Boeing aircraft.
Referring to Apple’s plans to manufacture iPhones in India, Trump said he had advised CEO Tim Cook against it, describing India as “one of the highest tariff nations in the world”.
“They have offered us a deal where basically they have agreed to charge us literally no tariffs. I said, ‘Tim, we are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of themselves’,” Trump said.
Apple recently announced it would move the bulk of its iPhone production from China to India, while shifting the manufacture of iPads and Apple watches to Vietnam.
In April, Trump imposed tariffs of up to 27 percent on Indian goods. India is now working to finalise a trade deal before the 90-day pause on further US tariff hikes expires on 9 July.
Until recently, the US was India’s largest trading partner, with bilateral trade totalling $190 bn. While India has already reduced tariffs on products such as Bourbon whiskey and motorcycles, the US still runs a $45 bn trade deficit with India – a gap Trump is keen to narrow.
Ajay Srivastava, a trade expert based in Delhi, said: “As Trump has consistently blamed India’s high tariffs for the trade deficit, India could propose a ‘zero-for-zero’ approach – making 90 percent of US exports tariff-free from day one, excluding sensitive sectors like autos and agriculture. But the deal must ensure strict reciprocity, with both sides eliminating tariffs equally.”
Trump and Prime Minister Narendra Modi have set a target to more than double bilateral trade to $500 bn. However, Delhi is unlikely to make concessions in politically sensitive sectors such as agriculture.
Last week, India signed a trade pact with the UK that will significantly reduce tariffs in protected sectors including whisky and automobiles. Last year, India concluded a $100 bn free trade agreement with the European Free Trade Association (EFTA) — a bloc of four non-EU European nations — after nearly 16 years of negotiations.
Talks between India and the European Union are also gaining momentum, with both sides aiming to finalise a free trade agreement this year.