In a bid to advance its ongoing trade negotiations with the United States, India has reportedly offered to impose zero tariffs on select American goods, including steel, auto components, and pharmaceuticals—up to a certain import quota. The offer is said to be part of a larger effort to ink a bilateral trade deal with Washington before autumn, according to a Bloomberg report citing sources familiar with the talks.
The proposal was reportedly made by Indian trade officials during their visit to Washington in late April. While the zero-duty concession would apply only to limited volumes of imports, any quantity exceeding that threshold would be subject to India’s standard tariff rates.
The development follows the April 2 announcement by former US President Donald Trump, who imposed sweeping new tariffs of up to 26% on Indian exports. However, in a policy shift on April 9, Trump paused the implementation of these reciprocal tariffs, citing the need to accelerate negotiations with key trade partners, including India.
Meanwhile, US Vice President JD Vance hinted at promising progress in trade talks with New Delhi. Speaking to Fox News last week, Vance remarked that India could be among the first nations to strike a deal under the new tariff regime. “Good negotiations are ongoing with India,” he said, while acknowledging parallel talks with Japan, Korea, and European nations.
Despite the optimism, US officials have yet to confirm any finalised agreements with trade partners. With Trump’s July 9 deadline for implementing the paused tariffs fast approaching, no country has signed a definitive pact with the US so far.
Trump, however, remains confident. Speaking aboard Air Force One on Sunday, he suggested trade deals could be announced as early as this week. “We’re negotiating with many countries,” he said. “At the end of this, I’ll set my own deals—they don’t set the deal.”
The India-US trade deal, if concluded, could mark a significant milestone in economic ties between the two nations, providing relief for key industries on both sides.