Will the tariff war end now? Donald Trump says India has made 'zero tax offer'

US President Donald Trump had last month announced that he would be charging a tariff of 26 per cent on India. Now, in Qatar, he has informed that India has promised to lower the tax rate on the majority of the goods coming from the US. With this, now big question is arising whether this will bring an end to the tariff war between India and the US?

India's 'Zero Tax' Offer

Donald Trump is on a three-country Gulf tour. In Qatar, as per Reuters, Donald Trump announced that India has made an offer of a trade deal to the US. India will now accept 'zero tariff' on numerous categories of goods imported from the US. Donald Trump's remark was made at a time when he himself declared ceasefire while brokering the India-Pakistan crisis. Not only this, but the two nations also threatened to discontinue trade if they failed to do so.

Trump and Xi Jinping recently agreed to lower tariffs for 90 days

Meanwhile, on April 30, Donald Trump had stated that talks between India and him on the trade agreement are in the best stage. The decision will be made soon. Donald Trump and his Chinese counterpart Xi Jinping recently agreed to lower tariffs for 90 days. Both nations have lowered tariffs on each other's products to 115%. 

Will the tariff war come to an end?

Yet there has been no reaction from India regarding Donald Trump's 'zero tariff' statement. Official information about any trade agreement has also not been announced about this. If this agreement is true, will the tariff war between these two nations end? 

The primary reason for initiating this US tariff war

But on May 9, a Reuters report indicated that India has offered to lower tariffs to the US. India will apply an average tariff of 4 per cent on US goods, down from 13 per cent. In this manner, India will reduce tariffs on US goods by an average of 9 percent. It should be pointed out that the US has applied a 26% tariff to India rather than an average of 13%. The primary reason for initiating this US tariff war is its increasing trade deficit. Now it has surpassed one trillion dollars. In other words, all the nations of the world with whom America does business, it incurs such huge loss overall.