Former US President Donald Trump has stated that India offered to eliminate all tariffs on American goods, although he wasn't in a hurry to finalize a trade agreement. Speaking with Fox News, Trump identified India as a prime example of a nation with trade barriers he aimed to dismantle, stating, "They make it almost impossible to do business. Do you know they're willing to cut 100 per cent of their tariffs for the United States?" However, he also gave conflicting signals regarding the deal's progress, saying, "That'll come soon. I'm in no rush. Look, everybody wants to make a deal with us."

In response to Trump's claim that India proposed a trade deal with "literally zero tariffs," External Affairs Minister (EAM) S. Jaishankar clarified that ongoing negotiations are intricate and far from complete. "Between India and the US, trade talks have been going on. These are complicated negotiations. Nothing is decided till everything is. Any trade deal has to be mutually beneficial; it has to work for both countries. That would be our expectation from the trade deal. Until that is done, any judgment on it would be premature," Jaishankar told reporters.

Trump's statements suggested that some nations might be indicating their willingness to reset trade relations with the US before higher import duties expire in July. However, these countries might face unilateral decisions from the US regarding applicable rates.

The comments align with the Trump administration's broader strategy to reshape global trade dynamics. Trump mentioned plans to establish new import duty rates for trading partners within the next few weeks. He also mentioned the prospect of expanding trade with Pakistan, India's rival. Trump had previously cited this as a factor in the US effort to mediate a ceasefire between the two nations following the Pahalgam terror attack in India. "I'm using trade to settle scores and make peace," Trump said.

The US also aimed to de-escalate a trade dispute with China, which Trump presented as a gesture of generosity. Following recent discussions, the US reduced its rate on China to 30 per cent from 145 per cent, while Beijing lowered its tariff levels from 125 per cent to 10 per cent, with both countries anticipating further talks. "If I didn't do that deal with China, I think China would have broken apart," Trump stated.