India has offered steep tariff reductions to the US, while the European Union accelerates trade talks to avoid President Trump’s hefty tariffs.
While the Trump administration threatened to impose heavy tariffs on imports from the European Union and other partners, India has formally proposed substantial tariff reductions to the United States. This proposal, part of bilateral negotiations aiming for a deal before July 9, paves the way for a transformation in trade relations between the two countries.
India’s Proposal for Tariff Reductions to the US
In the latest developments concerning tariffs and rising tensions between the United States and its trading partners, India has presented a notable offer to reduce tariffs to the US — a move that could mark a pivotal turning point in ongoing bilateral talks.
According to a Financial Times report released on Wednesday, May 28, 2025, the Indian government has expressed willingness to implement steep tariff cuts while seeking to maintain high duties on certain agricultural products such as grains and dairy. This offer comes as India strives to reach a comprehensive and balanced agreement ahead of the July 9 deadline set by the Trump administration.
India’s Position in the Negotiations
A well-informed source, who requested anonymity due to the sensitivity of the discussions, stated: “There is a possibility of very deep tariff reductions from India under the bilateral trade agreement; however, this must result in a balanced and mutually beneficial outcome for both parties.”
EU’s Response to Trump’s Tariffs
Meanwhile, India is not the only US trading partner aiming to ease tariff tensions. The European Union has announced efforts to fast-track trade negotiations in order to avoid President Trump’s proposed 50% tariffs. Contradicting his earlier statements, Trump postponed the implementation of these tariffs to July 9.
Trump’s Reaction and Official Statements
On Tuesday, President Donald Trump expressed optimism on social media regarding the opening of trade between the US and European nations. He tweeted: “This is a positive event, and I hope they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America. They will BOTH be very happy and successful if they do!”
Key Areas of US-EU Negotiations
Maroš Šefčovič, the EU’s chief trade negotiator, is leading the political discussions with the Trump administration. Sources close to the negotiations indicate that the focus lies on critical sectors such as semiconductors, automobiles, pharmaceuticals, and aluminum, aiming to prevent heavy tariffs.
Progress and Remaining Challenges in Negotiations
Šefčovič also noted that positive calls with Trump administration officials took place on Monday, resulting in progress in the talks. The EU had previously stated that the recent phone call between Trump and European Commission President Ursula von der Leyen provided “new momentum” for the negotiations.
Nevertheless, significant sticking points remain. After earlier describing the EU as “very difficult to deal with” and declaring talks were “going nowhere,” Trump postponed the deadline for imposing a “straight 50% tariff on the European Union” from June 1 to July 9.
Trump’s Pressure on Tech Companies
Alongside the EU and India’s trade issues, major tech companies such as Apple remain in the spotlight. Trump has declared that if Apple does not relocate iPhone production to the US, it will face a 25% tariff. He also stated that this policy would apply to other smartphone manufacturers, including Samsung.
Outlook for Global Trade Relations
Overall, these developments indicate that under Trump’s leadership, the US has adopted a stringent policy toward its trade partners, aiming to establish a new balance in global trade through negotiations combined with tariff pressures. The outcomes of these talks are likely to have a significant impact on the global economy and international trade dynamics.
