US President Donald Trump claimed on Friday that India has agreed to reduce tariffs, stating, “Somebody is finally exposing them for what they have done.” He accused India of imposing high tariffs that make it difficult for American businesses to sell products in the country. However, India’s Ministry of External Affairs (MEA) addressed the issue earlier in the day without confirming any decision regarding tariff reductions.
Tesla’s Entry and the Tariff Debate
Trump’s remarks come amid reports of Tesla planning to enter the Indian market, seeking zero import tariffs. Currently, India imposes vehicle import duties of up to 110%, a rate that Tesla CEO Elon Musk has criticized as one of the highest in the world. In the past, these steep tariffs discouraged Tesla from expanding into India, despite the country ranking as the third-largest automobile market globally.
Trump’s Justification for Tariffs
Defending his decision to impose tariffs on Canada, China, Mexico, and India starting April 2, Trump insisted that the US had been treated unfairly in trade. “Our country has been ripped off by everybody, and that stops now,” he said. He also claimed that during his first term, he had curbed these unfair practices and vowed to take stronger actions going forward.
India’s Response and Trade Agreement Talks
Unlike Canada, China, and Mexico—who have retaliated with their own tariffs and filed complaints with the World Trade Organization (WTO)—India has taken a more cautious approach. The MEA stated that discussions are ongoing between both countries to establish a Bilateral Trade Agreement (BTA). According to MEA spokesperson Randhir Jaiswal, the BTA aims to expand trade in goods and services, improve market access, reduce trade barriers, and strengthen supply chain ties between India and the US.
With trade negotiations continuing, it remains to be seen how India will navigate the ongoing pressure from the US while maintaining its own economic interests.
