On Friday, US President Donald Trump claimed that India has agreed to reduce its tariffs, saying, “Somebody is finally exposing them for what they have done.” His remarks followed an earlier statement by India’s Ministry of External Affairs, which addressed the tariff issue but did not confirm any agreement on lowering them.
Trump stated, “India charges us huge tariffs. Massive. You can’t sell anything in India… They have agreed, by the way; they want to significantly reduce their tariffs now because somebody is finally exposing them for what they have done.”
His comments come amid reports that Tesla is aiming for zero tariffs as it prepares to enter the Indian market. India currently imposes vehicle import duties of up to 110%, a rate Tesla CEO Elon Musk has criticized as one of the highest in the world. These steep tariffs had previously led Tesla to abandon its plans to enter India’s automobile market, which is the third-largest globally.
Trump defended his tariff threat on Canada, China, Mexico, and India, set to take effect on April 2, stating, “Our country has been ripped off by everyone, and that stops now. I had it stopped in my first term, and we’re going to stop it now because it has been very unfair. Our country, from an economic, financial, and trade standpoint, has been ripped off by nearly every country.”
While India has taken a more cautious stance in the trade dispute, countries like Canada, China, and Mexico have imposed retaliatory tariffs on the US and filed complaints with the World Trade Organization.
In response, Ministry of External Affairs spokesperson Randhir Jaiswal said, “The two governments are in the process of advancing discussions on a multisector Bilateral Trade Agreement. Through this agreement, our goal is to strengthen and deepen India-US trade in goods and services, increase market access, reduce tariff and non-tariff barriers, and improve supply chain integration between the two countries.”
