India has reportedly proposed zero tariffs on a select group of U.S. goods—including steel, auto components, and pharmaceuticals—within limited import quotas. The offer is part of a broader push to finalize a bilateral trade agreement with the United States before autumn.
The proposal was made during a visit by Indian trade officials to Washington in late April, according to sources cited by Bloomberg. Goods imported beyond the agreed quotas would continue to face standard Indian tariff rates.
This move follows a turbulent few weeks in trade policy. On April 2, former U.S. President Donald Trump announced new tariffs of up to 26% on Indian exports. But just a week later, on April 9, Trump paused the implementation of these duties. He cited the need to fast-track negotiations with key trading partners, including India.
U.S. Vice President JD Vance echoed that momentum last week. Speaking to Fox News, he noted that India could be among the first to secure a deal under the new tariff regime. “Good negotiations are ongoing with India,” he said, while mentioning parallel talks with Japan, South Korea, and European countries.
Despite the progress, no final agreements have been signed yet. The clock is ticking, with Trump’s July 9 deadline for implementing the postponed tariffs drawing near.
Still, Trump remains upbeat. Speaking from Air Force One on Sunday, he said announcements could come soon. “We’re negotiating with many countries,” he told reporters. “At the end of this, I’ll set my own deals—they don’t set the deal.”
A finalized India-U.S. trade agreement could significantly strengthen economic ties between the two nations. It would also provide relief for several key industries currently facing tariff pressures.
