Trump called out India's high duty on cars during Prime Minister Narendra Modi's visit to the U.S. last week, but agreed to work towards an early trade deal and resolve their standoff over tariffs. Tesla's CEO Elon Musk has long criticised India for having import tariffs of around 100% on EVs which protect local automakers such as Tata Motors in the world's third largest auto market,

Tesla is ramping up its India expansion with plans for showrooms in Mumbai and New Delhi, along with a new recruitment drive. But former U.S. President Donald Trump has called Tesla's potential factory in India "unfair" to the United States,

While US tariffs on Indian goods have remained relatively stable over the years, India's tariff policies have been more dynamic.

Reiterating his claim that “every country” took advantage of the US with tariffs, Trump began by citing the example of tariffs on cars in India

President Donald Trump’s shift in policy to reciprocal tariffs is a relief to markets, U.S. consumers and most trading partners.