President Donald Trump announced in Doha that India has proposed a zero-tariff trade deal.

The proposal comes as India seeks to finalize an agreement with the US within 90 days.

This initiative follows recent tariff increases imposed by Trump on April 9, 2025.

The new tariffs include a 26% duty on Indian goods entering the US.

India’s zero-tariff offer is seen as an attempt to ease trade tensions.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ India’s zero tariff offer represents dramatic reversal of trade posture

India’s reported offer of zero tariffs marks a stark departure from its traditionally protectionist stance, which has characterized its trade policy for decades.

The country has maintained some of the highest import duties among major economies, with an average tariff of 17% compared to the US average of just 3.3% as of 2023 1.

President Trump had previously labeled India the “tariff king” due to these high duties, highlighting the longstanding trade tension between the nations 2.

This potential shift comes amid evolving trade dynamics, with India already making specific “zero-for-zero” tariff proposals on auto parts and steel to the US as reported earlier this month 3.

Any broad zero-tariff agreement would represent India’s most significant trade policy reversal in recent history, potentially affecting billions in trade across sectors like pharmaceuticals, technology, and automotive industries.

2️⃣ India pursues multi-pronged global trade strategy amid changing economic landscape

The potential US deal comes just days after India secured a major trade agreement with the UK worth £25.5 billion ($34.1 billion) annually, representing a 60% increase from current bilateral trade 4.

This dual-track approach demonstrates India’s strategic focus on simultaneously strengthening trade relationships with multiple major economies rather than depending exclusively on any single market.