India has proposed a limited zero-tariff offer on select goods to the U.S. as part of ongoing trade negotiations, but President Trump is demanding deeper changes, including reforms to India’s strict product standards.
Key Facts:
- India has offered zero tariffs on steel, auto parts, and pharmaceuticals up to certain import limits in talks with the U.S.
- The proposal came during trade meetings in Washington late last month, with hopes of a deal by fall.
- The U.S. has raised concerns about India’s Quality Control Orders (QCOs), calling them non-transparent trade barriers.
- India exported $10.5 billion in pharmaceuticals and $19.1 billion in engineering goods to the U.S. in 2024–25.
- President Trump emphasized the imbalance in tariffs, stating India charges the U.S. 52% while America has charged nearly nothing in return.
The Rest of The Story:
India’s trade delegation made a proposal to the U.S. to eliminate tariffs on key industrial goods—steel, pharmaceuticals, and auto parts—on a reciprocal basis.
This would apply only to a specific quantity of goods, after which standard tariffs would resume.
Indian officials say their industries can compete on price and won’t be hurt by the move.
The U.S., however, is also pushing India to address non-tariff barriers, especially its Quality Control Orders.
These QCOs require all goods, including imports, to meet Indian regulatory standards.
U.S. officials argue these rules are opaque and limit fair market access.
In response, India has expressed willingness to consider revising the QCOs and enter a mutual recognition agreement where each country honors the other’s safety and quality standards.
While both sides aim to reach a quick deal, it remains uncertain if the current offers will be part of the final agreement.
Trump has signaled readiness to finalize certain trade deals soon and has highlighted India’s long-standing tariff advantages over the U.S.
Despite Trump’s public friendliness toward Prime Minister Modi, he made it clear: being a friend doesn’t mean getting a free pass.
“You’re a friend of mine, but you’re not treating us right. They charge us 52 percent, and we have charged them almost nothing for years and years,” Trump said.
Trump’s right to call out India’s sky-high tariffs. At 9.6% on average, they’re way above the US’s 2.6% or Europe’s 3%. Some goods, like cars (70%) or US farm products (37.7%), get hit hard, making it tough for American businesses. This helps India’s $35 billion trade surplus but… https://t.co/g1Myiptluz
— V (@VikramZutshi) April 21, 2025
Commentary:
President Trump’s America First trade approach is once again yielding results.
India’s zero-tariff proposal is a sign that the pressure is working.
For years, India has levied high tariffs—like the 52% Trump mentioned—on U.S. goods, while enjoying nearly free access to American markets.
That imbalance is finally being addressed.
This isn’t just about tariffs.
India’s strict Quality Control Orders have acted as quiet trade barriers.
These regulations make it hard for U.S. exporters to sell goods unless they comply with layers of Indian bureaucracy.
Linking tariff reduction to resolving these issues is a smart and necessary move.
It ensures that fair trade is actually fair, not just free.
India has benefited greatly from previous weak U.S. trade policies.
With rising exports in pharmaceuticals and engineering goods, their industries have boomed while American firms have dealt with red tape and steep duties.
The Trump administration is rightly insisting on true reciprocity.
The mutual recognition agreement India offered is a step in the right direction.
If India is serious, this could cut the red tape and boost trade for both sides.
But the U.S. must ensure that enforcement and transparency are part of any final deal.
This deal could mark another win for Trump’s trade team, though the mainstream media is unlikely to give him credit.
The Bottom Line:
India’s limited zero-tariff offer and willingness to revisit non-tariff trade barriers show that President Trump’s tough stance is delivering results.
The administration is tying tariff talks to real market access reforms, which could level the playing field.
If a deal is struck, it will be another quiet but significant trade victory.
And another example of Trump rewriting the rules on global trade.
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