Zero-for-Zero Tariff Strategy

Published on 10 Oct 2025

• US President Donald Trump has announced reciprocal tariffs on India from April 2025.

India's Possible Strategy – Zero-for-Zero Tariff Deal:

• India may propose a ‘zero-for-zero’ deal, eliminating tariffs on select US goods without harming its domestic sectors.

• In return, the US would remove tariffs on a comparable number of Indian goods.

• Though it may violate WTO’s MFN principle, it can be justified under GATT Article XXIV by framing it as a free trade agreement.
  
  

GATT Article XXIV – Key Conditions:

1. Eliminate barriers on substantially all trade among parties.0

2. Do so within a reasonable period (typically 10 years).

3. Must not raise tariffs or trade restrictions on other WTO members (those outside the agreement) compared to what they were before the agreement.

https://assets.upstox.com/content/assets/images/cms/2025327/Zeroforzero.png

Keywords:

Zero-for-Zero Tariff Strategy Tariff Tariff war reciprocal tariffs WTO World Trade Organization Most Favoured Nation MFN Free trade agreement free trade