US President Donald Trump claimed that India has agreed to reduce tariffs, stating that “somebody finally exposed them for what they have done.” This announcement comes amid ongoing trade tensions between the two nations and reports of Tesla’s potential entry into the Indian market.

The discussion on tariffs gains significance as Tesla prepares to enter the Indian market. India currently imposes vehicle import duties of up to 110%, which Tesla CEO Elon Musk has criticized as among the highest in the world. These steep tariffs previously deterred Tesla from entering India, the world’s third-largest automobile market. Reports suggest that Tesla is seeking zero tariffs to facilitate its entry, a move that could reshape India’s automotive industry.

Speaking on Friday, Trump highlighted India’s high tariffs, calling them “massive” and claiming they have made it difficult for US businesses to sell products in India. He asserted that India has now agreed to significantly lower these tariffs due to increased scrutiny. “They have agreed, by the way; they want to cut their tariffs way down now because somebody is finally exposing them for what they have done,” Trump said.

Trump also defended his administration’s decision to impose tariffs on several countries, including India, Canada, China, and Mexico, set to take effect from April 2. He argued that the US has been “ripped off” by unfair trade practices and vowed to address these imbalances. “Our country has been ripped off by everybody, and that stops now,” Trump said.

MEA spokesperson Randhir Jaiswal stated that India and the US are working towards a multi-sector Bilateral Trade Agreement (BTA). “Our objective is to strengthen and deepen India-US two-way trade in the goods and services sector, increase market access, reduce tariff and non-tariff barriers, and deepen supply chain integration between the two countries,” Jaiswal said.