India downplays Trump’s ‘no tariff’ comment, says US trade talks ongoing

India on Thursday said discussions with the United States on a potential trade agreement are still in progress and stressed that any conclusions—particularly around tariff concessions—would be premature.

“These are complicated negotiations and nothing is decided,” External Affairs Minister S Jaishankar said. “Any trade deal has to be mutually beneficial and work for both countries. That is our expectation from the deal, and until that is done, any judgement on it would be premature.”

The statement comes after US President Donald Trump, while addressing a meeting of business leaders in Doha on Thursday, claimed that India had offered a deal with “basically no tariffs” on American goods.

Also Read: Trump says India has offered US a trade deal with ‘basically no tariffs’

“It is very hard to sell in India, and they are offering us a deal where basically they are willing to literally charge us no tariffs,” Trump said.

The development follows Trump’s earlier comments in April, when he noted that “India tariff talks are going great” and indicated that a final deal might be close. However, Indian officials have been cautious in tone, underscoring the need for balanced outcomes that protect domestic interests.

According to reports, India has proposed a reduction in average tariff differentials with the US from 13% to under 4%, and offered to eliminate duties on 60% of tariff lines in the first phase. In return, India is seeking exemption from current and future US tariff hikes.

The US is India’s largest trading partner, with bilateral trade totalling $129 billion in 2024. India currently runs a $45.7 billion trade surplus with Washington.

The negotiations come in the backdrop of steep US tariff hikes announced on April 2 on imports from nearly 60 countries, including a 26% duty on several Indian goods. A 90-day pause on additional duties for India, effective from April 10, was seen as a goodwill gesture to allow space for progress.

Both countries are now aiming to secure an agreement before the tariff freeze expires on July 9.