In a high-profile televised interview alongside billionaire Elon Musk, US President Donald Trump reiterated his stance on reciprocal tariffs, emphasising that India will not be exempt from his trade policies. Speaking to Fox News' Sean Hannity, Trump recalled his conversation with Prime Minister Narendra Modi, asserting that the US would match any tariffs imposed by India on American goods.
"I told Prime Minister Narendra Modi yesterday - he was here - I said, 'Here's what we're going to do: reciprocal. Whatever you charge, I'm charging,'" Trump recalled. "He [PM Modi] goes, 'No, no, I don't like that.' 'No, no, whatever you charge, I'm going to charge.' I'm doing that with every country."
"Nobody can argue with me," Trump stated. "If I said 25 per cent, they'd say, 'Oh, that's terrible.' I don't say that anymore... because I say, 'Whatever they charge, we'll charge.' And you know what? They stop."
Trump on Tesla manufacturing in India
Trump further highlighted that India has some of the steepest import tariffs in the world, particularly in the automobile sector, where duties on foreign cars can reach up to 100 per cent. Supporting this claim, Tesla CEO Musk said, “It’s 100 per cent—auto imports are 100 per cent.”
"Yeah, that's peanuts. So much higher. And others too," said Trump in response.
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The US president argued that such high tariffs create significant barriers for American businesses looking to enter the Indian market, forcing them to manufacture domestically rather than export from the US.
"If he (referring to Musk) built the factory in India, that's okay, but that's unfair to us. It's very unfair," Trump said.
Trump's remark comes as Tesla is reportedly looking for land in Maharashtra to set up its first manufacturing unit in India. The company has posted job advertisements for positions in Mumbai, Delhi, and Pune, signalling expansion plans.
Trump's tariff threats to India
This is not the first time Trump has blasted India’s trade policies. During his first presidency, he frequently labelled India the “tariff king” due to its high import duties on US products, especially automobiles.
Defending his tariff policies, Trump said, “I was doing it [during my first term]. I charged China tariffs. I took in hundreds of billions of dollars. We had the greatest economy in history. But then we got hit with Covid-19, and we had to solve that problem… I want to come back and do the reciprocal tariffs because we have a deficit with almost every country in the world.”
India-US trade relations moving forward
Despite Trump’s strong rhetoric, India and the US have continued to work on strengthening their trade ties. Following PM Modi’s recent visit to Washington, both nations pledged to double trade volume to $500 billion by 2030 and finalise a bilateral trade agreement (BTA) by autumn 2025.