In what could mark a major diplomatic and economic breakthrough, Indian officials have quietly offered a bold new trade proposal to the Trump administration—one that Trump allies are already calling a resounding win for the president’s America First trade strategy.
During closed-door talks in Washington last month, India proposed eliminating tariffs on a number of key U.S. exports—specifically steel, auto components, and pharmaceutical products—up to a negotiated volume threshold. Once that cap is reached, standard tariff rates would resume. In exchange, India wants the U.S. to reciprocate, effectively creating a “zero-for-zero” trade corridor between the two nations.
The proposal, first reported by Bloomberg, comes as President Trump’s “Liberation Day” tariffs—announced April 2 and enacted April 5—rattle the global trade establishment. These sweeping tariffs, including a 10% blanket duty on all foreign imports and targeted retaliatory rates of up to 49%, have been Trump’s latest move to force fairer deals—and the pressure is working.
According to insiders, the India deal could be finalized as early as this fall, during a 90-day window in which Trump’s tariff authority remains fluid. India’s offer signals a dramatic departure from its traditionally protectionist stance, which has long placed steep tariffs—averaging 52%—on U.S. goods. The Trump administration’s recent 26% retaliatory tariff on Indian imports appears to have been the catalyst.
Speaking to reporters outside the White House on Tuesday, Trump was optimistic: “Trade talks with India are coming along great,” he said. “I think we’re going to get a very good deal.” He also hinted at upcoming visits to Africa and Australia as part of broader economic outreach.
The deal-in-progress also includes a possible compromise on India’s controversial Quality Control Orders (QCOs)—regulatory standards that U.S. businesses have long criticized as opaque and biased. India is now open to mutual recognition agreements that would allow each country to honor the other’s regulatory certifications, especially in chemicals and medical devices.
The impact of Trump’s tariff policy has already been felt across India’s economy. Diamond exports from Surat are down 17%, and the Indian pharmaceutical industry fears that U.S. tariffs could drive up healthcare costs by \$51 billion annually. In response, India has already slashed tariffs on Harley-Davidson motorcycles and bourbon—iconic U.S. exports with political punch.
If finalized, this deal would be a major win for U.S. manufacturers, consumers, and President Trump—proving once again that tough, unapologetic leadership delivers results.
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