[Source/Observer Network Qi Qian] On May 15 local time, US President Trump said in Qatar that India had agreed not to impose any tariffs on American goods. However, just recently, media reported that India's attitude towards the US had hardened, from actively negotiating to proposing to impose additional tariffs on the US.
According to Reuters and Bloomberg reports, Trump stated at a meeting with business executives in Doha, the capital of Qatar, that "it is very difficult to sell products in India, but they have proposed an agreement to us, basically willing to charge us no tariffs." Trump did not reveal more details, nor did he indicate whether the US would lower tariffs on India or offer zero tariffs to India.
The US and India are currently negotiating a trade agreement. Indian Commerce Minister Piyush Goyal will lead a delegation to visit the US on the 16th.
The Indian government has not yet commented on Trump's latest remarks. However, Reuters previously disclosed that in the first phase of negotiations, India had proposed reducing 60% of its tariffs on the US to zero, while providing preferential access for nearly 90% of American goods imported by India.
Trump also mentioned Tim Cook, CEO of Apple, regarding the transfer of production to India.
He revealed that he had told Cook that he did not want Apple to produce in India because India was "one of the countries with the highest tariffs in the world." "I said, 'Tim, we have been very good to you, we have tolerated all your factories built in China over the years... We are not interested in your factory in India. India can take care of itself, they are doing well, and we hope you will build a factory in the US,'" he said.
Trump speaking in Doha Video screenshot
It was reported that in recent years, Indian Prime Minister Modi has been striving to make India a smartphone manufacturing hub, and Apple's suppliers have also increased production in India. In March this year, to avoid the tariffs that Trump was about to implement, Apple's main supplier in India exported iPhones worth nearly $2 billion to the US, setting a new record high.
Data shows that the US is India's largest trading partner, with bilateral trade reaching approximately $129 billion in 2024. India's trade surplus with the US was $45.7 billion. Trump has long complained about India's high tariffs, which he claims harm the interests of American businesses.
Since the beginning of Trump's second term, the Indian government has actively engaged with the US on trade issues.
In February, Indian Prime Minister Modi visited the US and became the fourth foreign leader to be received by President Trump since he took office. After Trump announced the "reciprocal tariff" on April 2, India also became one of the first countries to negotiate trade with the US. During this period, Modi made concessions to the White House on issues ranging from trade to immigration.
In February, Trump met visiting Modi at the White House MoDi X account
According to previous reports by Bloomberg, as part of the trade negotiations, India also proposed implementing zero tariffs on a certain quantity of US imports such as auto parts and pharmaceuticals on a reciprocal basis. Additionally, the two countries have set a target to double their trade volume to over $500 billion.
However, it was recently revealed that India's stance on trade has suddenly changed, moving from active negotiation to proposing additional tariffs on the US.
According to media reports on May 13, India had previously sent a letter to the WTO, accusing the US of imposing a 25% steel and aluminum tariff as a trade protection measure, affecting Indian exports worth $7.6 billion and expecting to generate $1.91 billion in tariffs. In response, India plans to increase tariffs on some American goods.
Bloomberg pointed out that the above information indicates a shift in India's position on trade, possibly marking the first retaliatory measure taken since Trump returned to the White House. This suggests that after China resisted the US and achieved results, India is taking a tougher stance in negotiations.
Reports suggest that it is unclear why India chose this moment to retaliate. It is believed that this may be a negotiation strategy by the Indian government, as Indian Commerce Minister Piyush Goyal will visit the US for trade negotiations. According to Indian officials, New Delhi plans to include proposed retaliatory tariffs on US goods as part of the US-India negotiations.
More importantly, the above information was disclosed just hours before the US significantly reduced Chinese product tariffs. On the 12th, following high-level economic talks between China and the US, both sides agreed to reduce tariffs within 90 days, cutting rates by 115%.
Priyanka Kishore, founder of Singapore-based consulting firm Asia Decoded Pte, said that domestically, India is increasingly feeling that the government has "made too many concessions in trade negotiations with the US." She said that India "can use this opportunity to reassert its status as an equal trading partner."
Professor Biswajit Dal of the Indian Development Council also stated at the time that so far, the US has been "giving orders to India." The proposed retaliatory tariffs are the first sign of India's willingness to "stand up and take a tough stance." Dal said that China's success in prompting the US to reach an agreement indicates that India "must more firmly defend its own interests and show its courage."
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