President Donald Trump announced that India dropped tariffs on US goods signaling a significant shift in ongoing trade discussions. Speaking in Doha during a business forum Trump stated India agreed to eliminate tariffs on most American imports immediately.
India’s commerce ministry has not yet responded publicly. Trump shared these remarks while discussing Apple’s decision to move iPhone production from China to India in the coming months. He said he discouraged Apple CEO Tim Cook from expanding in India.
Trump claimed he reminded Cook that Apple had benefited from US tolerance in its manufacturing in China for many years. The president emphasized he preferred Apple to stay in the US and criticized India’s historical trade practices and high tariff levels.
Earlier this month Apple confirmed its plans to relocate primary production from China to India and Vietnam diversifying its supply chain. Meanwhile Trump imposed tariffs of up to 27% on Indian goods in April prompting India to negotiate to avoid more.
India has until July 9 to finalize a deal during Trump’s 90-day pause on additional tariff hikes across key sectors. In the past week, the US and China agreed to reduce import duties sharply, easing tension in their long-standing war.
Trump continues pushing to reduce America’s $45 billion trade deficit with India despite some progress on lowering specific product tariffs. India has already cut tariffs on American motorcycles and Bourbon whiskey but remains hesitant about politically sensitive sectors like agriculture.
Trade expert Ajay Srivastava believes India could cut 90% of US tariffs using a zero for zero strategy with reciprocal terms. Despite caution in key areas, India recently signed free trade agreements with the UK and the European Free Trade Association.
India also restarted talks with the European Union, aiming for a broader trade pact later this year. If India drops tariffs on US goods the trade relationship could pivot dramatically boosting efforts to double bilateral trade to $500 billion.
