India proposes zero-for-zero tariffs on pharmaceuticals, auto parts and steel to break Trump Tariff War deadlock

As the 90-day deadline established by the President is approaching, countries like India and Malaysia have proposed a big tariff figure

President Donald Trump announced a 90-day pause on tariffs on April 9, putting the 90-day time window to July 8.

While the time may be far, macroeconomic negotiations generally take a long time, and countries are taking the initiative beforehand.

India and the US are currently negotiating, with the Asian giant proposing a zero-for-zero tariff on essential goods. Among the listed goods are pharmaceuticals, auto parts, and steel. This zero tariff is based on whether or not the US reciprocates the gesture. Trading volume is also a major factor that the Indian delegates placed on the table.

The Indian proposal comes after President Donald Trump announced a 90-day pause on tariffs with several countries. The time frame began with the announcement in April, and the deadline for the tariffs is July 8.

However, the president signaled that he may be open to reducing tariffs on China before the 90-day period. Trump said that he would be willing to cut tariffs “quickly” if he saw progress in trade talks.

Earlier this week, the president said that he had a “very good conversation” with Chinese President Xi Jinping, and that he believed they would be able to reach a trade deal.

China is the primary yardstick determining whether or not there is progress in the trade war with the US. With both countries earlier raising tariffs in an unhealthy reciprocal manner, the impact on global inflation remained a major concern. The US Trade war is taking a new positive twist for the United States as many countries are now responding positively to President Donald Trump’s tariffs.

Most importantly, China has now varied tariffs on Ethane products from the US, making a grand gesture that can trigger a major shift in stance by both countries. Overall, market experts are watching where the ongoing negotiations will lead to.