India Proposes Zero Tariffs on Key US Imports Amid Trade Talks

India has offered to eliminate import duties on US pharmaceuticals, steel, and auto parts as trade negotiations between the two nations intensify. The proposal, reported by Bloomberg, signals a strategic concession to advance discussions on a broader trade deal. This development follows the US’s sweeping 10% tariffs imposed globally under the Trump administration, aimed at rebalancing trade deficits.

The zero-tariff offer targets high-value sectors where US exporters face competitive disadvantages. Steel and pharmaceuticals—industries with significant lobbying power in Washington—stand to benefit immediately from increased market access. Auto parts, another critical sector, could see accelerated supply chain integration if the deal materializes.

Trade analysts note the timing aligns with India’s push for stronger economic ties with Western allies. The absence of reciprocal demands from New Delhi suggests a calculated move to secure favorable terms in other areas, potentially including technology transfers or agricultural exports. Market watchers await Washington’s response, which could set the tone for bilateral relations through 2025.