US-India Trade Talks Heat Up: Zero Car Tariffs on the Table as Tesla Gears for Entry

The United States is advocating the removal of automobile import tariffs during current trade talks with India, potentially opening the door for Tesla's long-proposed entry into the world's third-largest car market. India currently charges up to 110% tariffs on imported cars, a level slammed by Tesla Chief Executive Elon Musk as one of the world's highest. Although India is contemplating deeper cuts, it is still not ready to eliminate tariffs to zero overnight. The talks are geared to increase bilateral trade to $500 billion in 2030, with formal discussions set to commence shortly. The move can redefine India's automobile industry, especially the electric vehicle segment, as the two nations strive towards a trade agreement by fall 2025.

 

Sources: Reuters, Business Today, Economic Times