India is offering a zero-for-zero tariff arrangement to the US on steel, automotive components and pharmaceuticals, based on mutual concessions and capped import volumes.

May 6, 2025

In an attempt to advance its ongoing trade discussions with the United States, India has submitted a proposal to implement zero-for-zero tariff arrangements on a limited set of goods, such as steel, automotive components and pharmaceuticals, based on mutual concessions and capped import volumes.

Sources familiar with the matter said the trade negotiations coincided with the 90-day suspension of proposed reciprocal tariffs announced by US President Donald Trump.

Several Asian nations, including Japan, South Korea and India, are actively pursuing provisional trade pacts with Washington amid this temporary window.

According to a leading global financial data and media company, Indian trade officials made the proposal during their visit to Washington last month, in a bid to fast-track negotiations for a bilateral trade deal expected by the fall.

As per sources, standard tariffs would be reinstated for imports exceeding the agreed-upon volume thresholds.

With both governments looking for a rapid resolution before expiry of the 90-day tariff moratorium, efforts were mainly focused on specific sectors, they added.

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On May 4, US President Donald Trump suggested that multiple trade agreements might be finalized in the coming week, which may help allay fears among the US trading partners concerned about heightened import duties.