The U.S. imposed a 24% reciprocal tariff rate on India as part of the Liberation Day levies announced in early April on top of the 10% baseline rate.

President Donald Trump, who is on a state visit to the Middle East region, has touted a "zero-tariff" offer from India, the second-largest Asian economy and one of the biggest trading partners of the U.S.

While speaking at a meeting with executives in Doha, Trump said, "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," Reuters reported.

New Delhi, however, hasn't responded to Trump's comments yet.

The U.S. imposed a 24% reciprocal tariff rate on India as part of the Liberation Day levies announced in early April on top of the 10% baseline rate. However, Trump has paused the implementation of the 24% rate for 90 days to allow time for bilateral negotiations in a bid to clinch a deal.

According to data from the U.S. Census Bureau, India was ranked 12th among U.S.' trading partners in March, accounting for about 10.1% of the total trade. The U.S. has remained India's biggest trading partner for four years in a row. 

India's trade surplus with the U.S. was $41.18 billion in fiscal year 2024-25.

In late April, at an event in Michigan, Trump said the trade talks with India have been progressing well and signaled that a deal could be imminent.

The U.S. President's claim of "zero tariffs" came even as India notified the World Trade Organization last week that it "reserves the right to suspend concessions or other obligations" that are substantially equivalent to the adverse effects of the U.S. levies on India's trade.

Trump discussed the India tariffs while disclosing that he had asked Apple CEO Tim Cook not to make iPhones in India, reasoning that the country has one of the highest tariffs in the world.

He noted that he told Cook, "Tim, we are treating you really good; we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of themselves."

With a hefty 145% tariff on Chinese goods, Apple has reportedly mulled shifting the production of all U.S.-bound iPhones to India as a workaround.

The Invesco QQQ Trust (QQQ) ETF and the SPDR S&P 500 ETF (SPY) are up 1.6% and 0.6%, respectively, this year, while the iShares MSCI India ETF (INDA) has gained 2.5%.

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