In what is an important development in the ongoing trade negotiations, India is reportedly offering zero tariffs on US pharmaceuticals, steel, and other imports. Indeed, the country is set to extend zero reciprocal import duties on the goods amid its ongoing trade deal discussions, Bloomberg reports.
The two countries are engaged in ongoing talks of a new trade deal following the United States’ imposition of 10% sweeping trade tariffs on all countries. US President Donald Trump introduced the plan in an effort to balance trade, with the focus being on new agreements that would fulfill this charge.
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India & US Trade Discussions Feature Zero Tariffs on Key Western Imports
One of the major developments of US President Donald Trump’s first 100 days back in the Oval Office has been the arrival of the nation’s America-first tariff policy. Its arrival has weighed heavily on the economy. Moreover, it has threatened to create a trade war with China, as its reciprocal action has it facing import duty increases of as much as 245%.
Yet, the plan appears to be making significant headway with nations interested in renegotiating. Specifically, India is now offering zero tariffs on US imports with key sectors up to a certain quantity. Indeed, the import duty exemption would extend to pharmaceuticals, steel, and auto parts.
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The discussions have ramped up, with both sides eyeing a new deal before Trump’s Liberation Day tariff plan concludes its 90-day pause. Moreover, the President has already hinted that some trade deals will come to fruition this week. Amid the talks, India has sought a place as the United States’ top replacement supplier.
Additionally, Washington has requested that India address “concerns around Quality Control Orders.” Sources say that it is considering a “non-tariff trade barrier for its exports.” In return, India has expressed its willingness while looking to sign a mutual recognition agreement with the United States. Amid the headway, it appears as though a new trade deal between both sides is merely a matter of time.