During a recent interview with FOX News, former U.S. President Donald Trump, in his first-ever joint televised appearance with billionaire entrepreneur Elon Musk, strongly criticized India's trade policies, particularly its high tariffs on American imports. Trump recalled his meeting with Indian Prime Minister Narendra Modi at the White House on February 14, where he confronted Modi about what he described as "unfair" tariffs, specifically on automobile imports. The discussion highlighted long-standing trade tensions between the U.S. and India, with Trump reaffirming his commitment to imposing reciprocal tariffs to counter what he views as protectionist measures by foreign nations.
Prime Minister Modi’s visit to Washington, D.C., last week was his first official bilateral meeting with Trump since the latter returned to office for a second term. The two leaders engaged in discussions covering a wide range of critical issues, including trade barriers, mass deportation policies, technology partnerships, and economic cooperation. However, one of the key points of contention was India's tariff structure, which Trump claimed puts American businesses at a disadvantage in the Indian market.
Expressing his frustration, Trump stated in the interview, “Every country in the world takes advantage of us, and they do it with tariffs. They make it practically impossible for us to sell a car in India. I don’t know if that’s true or not, but I think…” At this point, Elon Musk interjected, clarifying, “It’s 100 percent on auto imports.” Trump seized on this point, doubling down on his argument, “The tariffs are so high. They don’t want us to sell there—now, if we built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair.”
Recounting his conversation with PM Modi, Trump claimed that he directly confronted the Indian leader about this issue. “I told Prime Minister Modi yesterday—he was here—I said, ‘Here’s what we’re going to do: reciprocal. Whatever you charge, I’m charging,’” Trump asserted. He further alleged that Modi was not pleased with this approach, recalling, “He goes, ‘No, no, I don’t like that.’” Trump, however, remained firm in his stance, responding, “‘No, no, whatever you charge, I’m going to charge.’ I’m doing that with every country.”
Trump defended his policy of reciprocal tariffs as a necessary step to ensure fair trade practices. “Nobody can argue with me on this,” he stated confidently. The former president formalized this stance in a proclamation signed at the Oval Office, declaring that the United States would impose equivalent tariffs on any country that levies high duties on American imports. “On trade, I have decided that for the purpose of fairness, I’ll charge reciprocal tariffs—meaning, whatever countries charge the United States of America, we will charge them—no more, no less,” he emphasized.
Trump specifically singled out India’s trade policies, arguing that the country imposes higher tariffs than any other nation. “India imposes more tariffs than any other country,” he claimed, reinforcing his stance that no nation should expect special exemptions or waivers under his administration’s trade policy. He stressed that American businesses and manufacturers should not be put at a disadvantage due to foreign-imposed trade barriers.
The issue of tariffs has long been a contentious subject in U.S.-India trade relations. While India has defended its tariff policies as necessary measures to protect domestic industries, encourage local manufacturing, and support economic self-reliance, Trump has repeatedly argued that such policies create an uneven playing field for American businesses. His insistence on imposing reciprocal tariffs signals potential hurdles in future trade negotiations between the two nations.
As Trump pushes for stricter trade policies, India may face mounting pressure to revisit its tariff structures and negotiate new terms that align with Washington’s expectations. The U.S.-India trade relationship is a crucial aspect of the broader strategic partnership between the two countries, and any changes in tariff policies could have significant implications for businesses, diplomatic ties, and economic cooperation moving forward.
