India has proposed eliminating tariffs on select imports of steel, auto components, and pharmaceuticals from the United States up to a predetermined volume, as part of ongoing bilateral trade negotiations. The offer, which includes a reciprocal arrangement, was reportedly made by Indian trade officials during a visit to Washington in late April.
According to a report by Bloomberg, the zero-tariff proposal would apply only within a specific quota. Once that limit is exceeded, standard import duties would resume. Discussions are part of a broader effort to finalize a trade deal between the two countries, with an agreement possibly expected by autumn this year.
The trade talks follow the imposition of new tariffs by US President Donald Trump on April 2, which included a 26 percent duty on Indian exports to the US. However, Trump announced a pause on the tariffs on April 9 to facilitate ongoing negotiations.
US Vice President JD Vance recently indicated that India may be among the first countries to finalize a trade deal with the US under the current framework. “I don’t know if it’ll be your first deal, I think it would be among the first deals for sure… obviously we’ve got a good negotiation going on in India,” Vance said in an interview.
While Trump has stated that trade deals may be announced soon, no final agreements have been concluded as of now. Talks with multiple countries are ongoing ahead of a July 9 deadline.
India’s trade discussions with the US are focused on mutual tariff adjustments and access to key industrial sectors. The proposed quotas are part of an attempt to balance market access with protection of domestic industries.
India is engaged in multiple bilateral trade negotiations and is seeking preferential access for its products while offering selective concessions to trading partners.