India has put forward a “zero-for-zero” tariff proposal to the United States, seeking to eliminate import duties on steel, auto parts, and pharmaceutical products up to a certain amount. The idea is part of broader trade negotiations that aim to reach a bilateral deal between the two countries by the fall of 2025.
The concept was apparently suggested by Indian officials during their late-April visit to Washington. The duty-free agreement would only apply to certain import quantities. Any volume above the agreed-upon threshold would still be subject to India’s usual tariff charges. This step is consistent with ongoing efforts to prevent the reintroduction of US reciprocal tariffs after the current 90-day ban expires on July 8, 2025.
US Treasury Secretary Scott Bessent welcomed India’s trade openness, citing its limited use of subsidies and fewer non-tariff barriers. These elements, he claims, make India a strong prospect for completing such a deal.
India is also addressing US concerns over Quality Control Orders, which Washington sees as trade impediments. In response, India expressed willingness to alter these standards and offered reciprocal recognition of regulatory rules in fields such as medical devices and chemicals.
