Trump claims India offers zero-tariff trade deal, sparks market rally

In a surprising announcement made during a business forum in Qatar, US President Donald Trump stated that India has proposed a trade agreement with the United States that would involve "literally zero tariffs." The claim, which lacked supporting details, has not yet been confirmed or addressed by Indian authorities.

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Trump’s comments had an immediate impact on the financial markets, with Indian equity indices climbing nearly 1.5%, reaching their highest point in seven months. The market optimism reflects investor hopes that US-India trade negotiations may soon reach a breakthrough. The dialogue between the two nations has been ongoing since Prime Minister Narendra Modi’s visit to Washington in February. The first phase of the deal is expected to be finalized by fall, with Indian Commerce and Industry Minister Piyush Goyal scheduled to visit the US between May 17 and 20 to further discussions.

Meanwhile, Trump also made controversial remarks regarding Apple CEO Tim Cook, claiming he had persuaded the tech leader to limit Apple’s manufacturing expansion in India and focus on US-based production. These comments came as India warned of retaliatory tariffs in response to existing US duties on steel and aluminum, signaling New Delhi’s firmer approach in trade discussions.

Tensions remain high, particularly after Trump previously asserted that trade talks had played a role in calming recent India-Pakistan hostilities, a statement firmly denied by Indian officials.