India 0% Tariff on US: What’s Really Happening?

United States president, Donald Trump has started a tariff war globally where countries are contemplating imposing tariffs on each other to get their way. But in this context, something significant happened between India and the United States regarding the tariff issue.

Last night, it was communicated that Donald Trump has reduced the tariff on India from the existing 25% to 18%. Shortly after, it was officially communicated that the Indian authorities have also reduced the tariff on the United States.

The idea of India removing tariffs on trade worth 500 billion dollars needs serious thinking. Right now, India does not supply goods to the US at that scale. Our exports are limited, while what the US is asking for is very large. When one side gives more and the other gains more, the deal becomes unfair. Zero tariffs on such a huge amount can hurt Indian industries badly.

Another major concern is oil. If India is asked to stop buying oil from Russia, it creates a problem. Russia sells oil at cheaper rates, which helps India control fuel prices and inflation.

US crude oil is more expensive and not always suitable for Indian refineries. Switching completely to US oil would increase costs for India and put pressure on the economy. That loss will directly affect common people.

If India agrees to zero tariffs on 500 billion dollars, Indian manufacturers, farmers, and small businesses will struggle to compete with cheaper American imports. This could lead to job losses and long term damage to domestic production. Trade should always be about mutual benefit, not one sided sacrifice.

If the US leadership truly values India as a partner, the focus should be on easing restrictions on Indian professionals and students. Relaxing H1B visa rules or making F1 student processes smoother would actually help both countries. Indian talent contributes greatly to the US economy.

Pushing India into a deal that causes financial loss makes no sense. Friendship should not mean accepting a bad deal. Any agreement must protect India’s interests first, otherwise the country will end up paying a heavy price in the long run.