Jaishankar Refutes Trump’s Claim of ‘Zero-Tariff’, States ‘Nothing Has Been Decided’
Jaishankar Denies Trump’s Zero Tariff Statement on US Goods
External Affairs Minister S. Jaishankar has dismissed President Trump’s assertion that India has agreed to eliminate tariffs on US products, clarifying that trade discussions are still in progress and no final agreement has been reached. India is aiming for a deal that benefits both parties amidst challenging discussions surrounding the Bilateral Trade Agreement (BTA) and the recent increase in US tariffs.
Shortly after President Trump stated in Doha that India is “willing to literally charge us no tariffs” under a forthcoming bilateral accord, the Indian government refuted this claim. Jaishankar emphasized, “Trade negotiations between India and the US have been ongoing. These discussions are complex. Nothing is finalized until everything is confirmed.” While he did not directly address Trump’s statement, Jaishankar reiterated that India is pursuing a trade arrangement that serves the interests of both nations. “The trade deal must be advantageous for both sides. That is our expectation. Until we reach that point, any judgment would be inadequate,” he asserted.
As the US president made his comments regarding India’s zero-tariff offer, India’s Commerce and Industry Minister Piyush Goyal is preparing to visit the US next week to advance discussions on the BTA and potentially explore an interim trade deal prior to a comprehensive agreement. During Goyal’s visit, a delegation of officials will concurrently meet in Washington, with chief negotiators engaging in discussions parallel to Goyal’s meetings.
On April 2, the US implemented a 26% additional tariff on Indian imports as part of a broad reciprocal tariff strategy aimed at revitalizing the American manufacturing sector and enhancing domestic job growth. However, just one week later, many countries, including India, were granted a 90-day reprieve during which negotiations for tariff concessions for the US are expected to take place. This has resulted in the additional tariff on India being set at a baseline of 10%.
Recently, the US and China, key players in the ongoing global trade transformation, reached a temporary agreement to substantially lower bilateral tariffs from previously announced punitive rates, with the US reducing tariffs on Chinese products from 145% to 30%. Reports indicate that Goyal has scheduled meetings with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick.
As both countries engage in intensive negotiations over the BTA and the potential interim agreement, India has informed the World Trade Organization (WTO) of its right to impose retaliatory tariffs on steel and aluminum that the US has enacted under its national security laws. According to officials, the issue of tariffs on steel and aluminum may also be addressed as part of the BTA discussions.
At present, India’s simple average tariff on a Most Favored Nation (MFN) basis is approximately 17%, with a trade-weighted average of 12%. A significant portion, about 20%, of India’s merchandise exports is directed to the US. The US is particularly interested in securing market access for dairy products, nuts, and other agricultural goods in India, as well as facilitating easier entry for major technology firms into the Indian market, even without a significant physical presence. Concerns regarding data privacy and India’s stringent intellectual property rights policies are also among the topics of interest for US officials.
