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India Seeks Landmark Trade Deal with US Amid Trump’s 90-Day Tariff Pause
India eyes a sweeping trade deal with the US, offering zero duties on 60% of tariff lines just weeks after Trump announced a 90-day pause on tariff hikes.
ND
by News Desk
2025-05-15
India Seeks Landmark Trade Deal with US Amid Trump’s 90-Day Tariff Pause

India is pushing hard to secure a landmark trade deal with the United States within the 90-day tariff suspension window announced by former US President Donald Trump on April 9.

Speaking at a business meeting in Doha, Trump said India had made an aggressive offer to significantly lower trade barriers:

“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.”

According to Reuters, India has proposed reducing import duties to zero on 60% of tariff lines in the first phase of the deal, while also offering preferential access to 90% of the goods it currently imports from the US.

India’s equity markets reacted positively, with benchmarks jumping to a seven-month high following Trump’s remarks.

📦 iPhones, Tariffs & Apple’s Pivot to India

Trump also revealed details of a conversation with Apple CEO Tim Cook, pushing back on the tech giant’s India expansion plans:

“We are not interested in you building in India. India can take care of themselves… we want you to build here.”

Despite Trump’s concerns, Apple has been rapidly increasing its iPhone production in India to navigate potential tariffs on Chinese-made goods. In March, Apple’s suppliers Foxconn and Tata shipped $2 billion worth of iPhones from India to the US — a record high.

India’s Prime Minister Narendra Modi has been championing India as a manufacturing hub, and Apple’s growing presence is seen as a validation of the strategy.

Bilateral Trade Snapshot

The US is India’s largest trading partner, with bilateral trade reaching $129 billion in 2024, and India currently enjoying a $45.7 billion trade surplus.

Still, India’s historically high import tariffs have been a sticking point in trade negotiations. Trump has previously labelled India a "tariff abuser."

To expedite the trade deal, India’s Trade Minister Piyush Goyal will lead a high-level trade delegation to the US starting May 16, according to officials cited by Reuters.

Observers believe that both sides are racing to finalize a deal before the 90-day tariff pause ends, potentially reshaping economic ties between the world’s two largest democracies.
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