Trump says India has offered US a '0-tariff' trade deal
What's the story
United States President Donald Trump has announced that India has offered a "zero-tariff" trade deal.
This announcement comes after Trump's earlier assertion on April 30 that talks with India were moving along nicely and that he was optimistic about sealing a deal soon.
India is hoping to reach a deal with the US within the 90-day pause declared by Trump on April 9 on tariff hikes for major trading partners, which included a 26% duty on India.
Trade talks
Ongoing negotiations between US and India
"It is very hard to sell in India, and they are offering us a deal where basically they are willing to literally charge us no tariffs," Trump, who is on a three-nation West Asia tour, said in Doha.
Since Trump's tariff announcement, the US and India have engaged in high-level trade negotiations to level things.
As per a recent Reuters report, India offered to cut its average tariff differential with the US from about 13% to less than 4%.
Trade negotiations
India's request for exemption from US tariff hikes
In return for the proposed tariff reduction, India is asking for full exemption from existing and potential future US tariff hikes.
The US had slapped duties on imports from almost 60 countries, including an additional 26% duty on Indian goods across sectors on April 2.
But on April 10, the US government suspended additional tariffs on Indian exports for 90 days (until July 9), giving both countries a window to hasten trade talks.
Trade policies
US-UK reach deal
Last week, Trump declared his administration's first "breakthrough deal" with the UK.
It reduces average British taxes on US goods while maintaining Washington's 10% base tariff on British goods, potentially laying the groundwork for Washington's approach to other trading partners.
An Indian government official told Reuters that India and Japan are the next two countries in line to finalize a deal after the UK.