BREAKING: India offers zero-for-zero tariffs on both auto parts and steel from the United States.
— The Kobeissi Letter (@KobeissiLetter) May 5, 2025
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.
