India Offers ‘Zero Tariff’ Deal on U.S. Goods in $500 Billion Trade Proposal – President Donald Trump

India Offers ‘Zero Tariff’ Deal on U.S. Goods in $500 Billion Trade Proposal – President Donald Trump

Doha, Qatar – May 15, 2025

President Donald Trump has stated that India has proposed eliminating all tariffs on imports from the United States as part of a massive $500 billion trade plan.

Speaking at an event in Doha, Trump said, “India has offered us a deal where they will virtually impose no tariffs on our goods.” The U.S. and India are currently in talks over a broader trade agreement. However, the Indian government has yet to issue a formal comment on Trump’s statement. The BBC has reached out to India’s Ministry of Commerce for clarification.

Details of the proposed trade agreement remain undisclosed.

U.S.-Qatar Business Agreements

During the same event with business leaders in Doha, Trump also announced that several agreements had been signed between the United States and Qatar, including deals involving Boeing jets.

Trump on Apple and Manufacturing

According to a Bloomberg report, Trump revealed that he had told Apple CEO Tim Cook not to expand manufacturing operations in India.
“I told him, I don’t want you making anything in India,” Trump said. He added that Apple would now increase its production within the United States.

However, earlier this month, Apple’s earnings report confirmed that the company was shifting much of its iPhone production from China to India, with Vietnam becoming a key hub for iPad and Apple Watch manufacturing.

Tariff Disputes and Trade Talks

In April, Trump imposed tariffs of up to 27% on Indian goods. In response, India showed renewed interest in a bilateral trade agreement. Trump had placed a 90-day “pause” on these tariff hikes, which is set to expire on July 9.

Until recently, the U.S. was India’s largest trading partner, with bilateral trade valued at nearly $190 billion. However, India’s trade surplus with the U.S. remains at around $45 billion—a gap Trump aims to reduce.

Expert Analysis

Ajay Srivastava, a New Delhi-based trade analyst, commented, “Since Trump frequently blames India’s high tariffs for the trade deficit, India might adopt a ‘zero-for-zero’ approach—lifting tariffs on all products except cars and agricultural goods. But any such deal must have strong reciprocity—both sides should reduce tariffs equally.”

India’s Evolving Trade Policy

Trump and Indian Prime Minister Narendra Modi have already set a goal to expand bilateral trade to $500 billion. Still, India remains hesitant to grant major concessions in sensitive sectors like agriculture.

Recently, India has shown increased interest in global trade deals, moving beyond long-standing hesitation. Just last week, India signed an agreement with the UK that reduces tariffs on protected items such as whisky and automobiles.

Additionally, last year, India signed a $100 billion free trade agreement with the European Free Trade Association (EFTA) after nearly 16 years of negotiations.

India and the European Union also aim to finalize a free trade agreement by the end of this year.