Trump Talks Trade with India, Claims 100% Tariff Cut; Jaishankar Responds with Caution

Washington/New Delhi, May 17 – Former U.S. President Donald Trump has sparked headlines again by claiming that India has offered to remove all tariffs on American goods as part of an evolving trade arrangement. Speaking in an interview with Fox News, Trump said India is willing to cut “100 per cent of their tariffs” for the United States — an assertion that has drawn a measured response from the Indian government.

“Do you know they're willing to cut 100 per cent of their tariffs for the United States?” Trump said. “That’ll come soon. I’m in no rush. Everybody wants to make a deal with us.”

However, India’s External Affairs Minister Dr. S. Jaishankar promptly responded on Thursday, stating that the negotiations are far from concluded and still involve “complex” discussions. “Nothing is decided until everything is. Any trade deal has to be mutually beneficial and serve both sides’ interests. Until that’s achieved, it’s premature to pass judgment,” Jaishankar told reporters.

Mixed Signals from Trump

Despite claiming progress on a possible U.S.-India trade deal, Trump also signaled ambiguity regarding timelines. “I’m not planning to make deals with everybody. We’ll take our time,” he added, suggesting that domestic policy and strategic calculations could influence final decisions.

He further hinted at a restructuring of global trade dynamics, indicating that several U.S. trading partners — including India — might soon face unilateral decisions on tariff rates, with a new duty framework expected in the next two to three weeks.

Pakistan, China Also Mentioned

In a geopolitical twist, Trump mentioned the possibility of expanding trade with Pakistan, India’s strategic rival. He linked trade discussions with broader diplomatic efforts, including efforts to “make peace” amid India-Pakistan border tensions, following the Pahalgam terror attack.

“I’m using trade to settle scores and make peace,” Trump remarked, referring also to ongoing efforts to manage U.S.-China trade tensions. He claimed credit for averting a Chinese economic crisis by brokering a recent tariff reduction deal — the U.S. lowered duties from 145% to 30%, while China dropped its rates to 10%.

India’s Position Remains Guarded

Indian officials have maintained a cautious stance, emphasizing that no unilateral tariff removal has been committed to. The government remains focused on securing a deal that ensures reciprocity, market access, and strategic alignment.

As the July deadline for possible new U.S. tariff structures looms, observers say both countries could benefit from resolving pending trade issues, but mutual trust and economic balance will be key to finalizing any deal.