India is proposing that some American products shipped into the country would have no tariffs at all, according to a new report.
According to Bloomberg, India would allow a set quantity of steel, auto components, and pharmaceuticals into India as long as the U.S. does the same. The report cited sources it did not name.
Anything above the limit would pay the customary tariffs or other fees, the report said.
India proposed the deal late last month.
A trade agreement between India and the U.S. is due to expire this fall, but both sides are working to strike a deal before the end of the 90-day pause on new tariffs announced by President Donald Trump.
Trump has indicated that trade deals could emerge this week from negotiations with trading partners that include India, Japan, and South Korea.
The Trump administration also wants India to address concerns with what are called Quality Control Orders, which the U.S. believes is a non-tariff trade barrier for its exports, the sources said. The U.S. is proposing a common standard for both countries.
The progress comes amid media criticism of Trump’s tariff policies, “which could sink his presidency,” according to the Wall Street Journal.
“It’s a mistake to think the tariff damage is only domestic. The willy-nilly assault on friends and foes has shaken global confidence in U.S. reliability,” the Journal wrote in an editorial.
Will India give Trump exactly what he wanted all along?
India is seeking to grab a major share of the smartphone market, according to The New York Times
The Times estimated that India currently produces about 20 percent of Apple’s iPhones as the tech giant transitions from its vast reliance on China and noted that as Trump was due to announce his new tariff policy, India was shipping about 2,000 tons of iPhones per month to the U.S.
The Times report said India is seeking to increase its share of the iPhone market to 30 percent.
Trump’s right to call out India’s sky-high tariffs. At 9.6% on average, they’re way above the US’s 2.6% or Europe’s 3%. Some goods, like cars (70%) or US farm products (37.7%), get hit hard, making it tough for American businesses. This helps India’s $35 billion trade surplus but… https://t.co/g1Myiptluz
— V (@VikramZutshi) April 21, 2025
Trump has indicated that positive relations with nations, such as India, will not deter him from striking a trade deal using tariffs as a cudgel.
Trump has described Indian Prime Minister Narendra Modi as a “great friend,” according to the Australian Broadcasting Corp.
But there is friendship, and there is business, Trump noted.
“You’re a friend of mine, but you’re not treating us right. They charge us 52 percent, and we have charged them almost nothing for years and years,” Trump said.
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