Has India offered Trump zero tariffs? What we know and why it matters

United States President Donald Trump said on Thursday that India had offered a trade deal that proposed almost “no tariffs” on US goods, as the South Asian nation seeks to avert higher import and export costs.

India disputed Trump’s claim. But New Delhi is looking to clinch a trade deal with the US within the 90-day pause announced by Trump on April 9, on so called reciprocal tariffs for major trading partners. On May 8, the White House secured a trade agreement with the United Kingdom, two days after India inked a similar pact with it.India’s equity benchmarks jumped about 1.5 percent following Trump’s comments. The Nifty 50 edged up 1.6 percent while the BSE Sensex gained 1.48 percent, reaching their highest levels in seven months.

India was one of the first countries to begin trade negotiations with the US following Prime Minister Narendra Modi’s visit to the White House in February, with both sides agreeing to finalise a bilateral deal this year.

Last month, meanwhile, US Vice President JD Vance visited India and met with Prime Minister Narendra Modi, hailing what he called “very good progress” on a trade agreement between Washington and New Delhi.