PM Modi with Donald Trump (PTI)
Under Donald Trump's administration the United States government hopes to gain Indian consent for removing automotive tariffs through a proposed trade agreement. The sources interviewed by Reuters state that India shows reluctance toward instant zero-duty reductions but explores possible duty cuts.
Elon Musk has denounced India's vehicle import duties at their high level of 110% since the duties stand among the strongest worldwide. Previous year Tesla halted its plans to penetrate the Indian market because of high import duties which placed it among the world's most restrictive markets for automobiles.
American President Donald Trump supports Musk's contention by continuously denouncing India's excessive taxation policies. During his Tuesday Congressional address President Trump focused on Indian automotive tariffs which exceed 100% by hinting at potential retaliatory policies.The United States demands that India reduces tariffs to minimal levels throughout all sectors except farming according to the first source who pointed out that automotive sector tariff expectations were most precise.
Trump and Modi reached an agreement at their recent meeting to solve tariff conflicts while working on the first stage of their pact until fall 2025 with plans for $500 billion in annual bilateral trade by 2030. Trade Minister Piyush Goyal remains in the United States while conducting trade debates with US Commerce Secretary Howard Lutnick during a week-long trip. His upcoming meeting will include United States Trade Representative Jamieson Greer. After decreasing import taxes on approximately 30 items that include premium motorcycles India showed commitment to avoid protectionist measures through plans for reviewing luxury vehicle surcharges.
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