In a major trade development, U.S. President Donald Trump has claimed that India has offered to reduce tariffs on American goods to zero. The statement, made on Monday, comes at a time when global trade relationships are under close watch, and it has already stirred strong reactions in political and business circles.
Speaking at a press briefing, President Trump said, “It’s getting late, but India has now offered to cut tariffs to nothing on U.S. products.” He emphasized that this should have been done years ago, highlighting what he described as longstanding trade imbalances between the two nations.
The announcement coincided with Indian Prime Minister Narendra Modi’s meetings with Russian President Vladimir Putin and Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit. While no official confirmation has yet been provided by Indian authorities, the statement indicates a possible major shift in U.S.-India trade relations.
If India does proceed to eliminate tariffs on American goods, it could dramatically reshape trade between the two countries. Currently, India levies tariffs on a range of U.S. exports, including agricultural products, automobiles, electronics, and industrial goods. Reducing these tariffs to zero would not only benefit U.S. manufacturers and exporters but could also lead to cheaper American goods in the Indian market.
For India, the move could strengthen diplomatic ties with Washington and potentially open up access to U.S. markets in sectors where Indian products face trade barriers. Experts believe such a step may also help India attract more U.S. investments and collaborations, especially in high-tech and energy sectors.
However, trade analysts caution that removing tariffs entirely may have significant domestic implications. Indian industries that currently enjoy tariff protection might face tougher competition from U.S. imports. Sectors like agriculture, automobiles, and consumer electronics could experience pressure if cheaper U.S. goods flood the market.
On the geopolitical front, Trump’s announcement adds a new layer of complexity. The timing of the statement — made while PM Modi was engaged in discussions with major global leaders — suggests Washington is signaling its willingness to deepen economic cooperation with India even as New Delhi balances its ties with Russia and China.
While many business leaders in the U.S. welcomed Trump’s statement, calling it a potential “game-changer” for exporters, several Indian economists urged caution, highlighting the need for clear details. As of now, neither the U.S. nor India has released any official trade document outlining which goods or sectors would see tariff elimination.
If this development moves forward, it could mark one of the most significant trade shifts in recent years, aligning India closer with U.S. economic policy while potentially reshaping its own domestic market structure.
For now, all eyes are on both governments. Investors, exporters, and policymakers are awaiting formal confirmation, detailed agreements, and a timeline for implementation. Until then, Trump’s bold statement has already set off discussions in boardrooms, policy circles, and global markets about what this could mean for the future of U.S.-India trade relations.