U.S. Presses India to Slash Car Import Tariffs Amid Trade Talks

The United States is pushing India to eliminate tariffs on car imports under a proposed trade deal, but India is resistant to immediate changes. The discussions, crucial for American electric vehicle maker Tesla's entry into India, highlight high tariffs of up to 110%, among the steepest globally.

The United States is intensifying its push for India to lower tariffs on car imports under a proposed trade deal between the two nations. However, sources indicate that New Delhi is hesitant to slash these duties to zero immediately, despite considering further reductions.

The high tariffs on automobiles are expected to be a key topic during formal negotiations for a bilateral trade agreement yet to commence. This development is significant for American electric vehicle manufacturer Tesla, which plans to enter the Indian market. With import taxes on cars peaking at 110%, Tesla CEO Elon Musk has criticized the steep rates.

Recently, U.S. President Donald Trump has voiced support for Musk's stance, condemning the excessive tariffs and hinting at potential retaliatory measures. The United States is urging India to lower tariffs to either negligible levels or zero in most sectors, especially automobiles, with agriculture being an exception.

(With inputs from agencies.)