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India offers zero-for-zero tariffs on auto parts, steel from US
India has proposed eliminating tariffs on limited quantities of steel, auto components, and pharmaceuticals in its trade negotiations with the United States. Under this proposal, zero duties would apply up to a specified import threshold, after which standard tariffs would resume. The offer is aimed at accelerating the finalization of a bilateral trade agreement, expected by fall, with a focus on key sectors before the current U.S. tariff pause expires.
India has proposed zero tariffs on steel, auto components, and pharmaceuticals on a reciprocal basis, up to a certain quantity of imports, in its trade negotiations with the US, according to sources familiar with the matter. Beyond this threshold, imported industrial goods would be subject to the regular duty rates, the sources said, requesting anonymity due to the confidential nature of the discussions. The offer was made by Indian trade officials during a visit to Washington late last month to accelerate negotiations on a bilateral trade deal expected by this fall.
The two countries are prioritizing specific sectors to finalize an early trade agreement before the end of the 90-day pause on US President Donald Trump’s retaliatory tariffs, the sources added.
Amid a slowdown in the US economy, Trump indicated on Sunday that some trade deals could be concluded as early as this week, providing relief for trading partners seeking to avoid higher US import duties. Asian economies, including South Korea, Japan, and India, are among those competing to reach interim agreements with the US administration.