In a recent interview with Fox News, US President Donald Trump revealed some information from his conversation with Prime Minister Narendra Modi, who toured the US this month. PM Modi’s visit was made amid tensions over Trump’s threats to impose reciprocal tariffs, especially in the automotive sector.
During the interview, Trump specifically mentioned India as a case where nations are wrongly gaining from the trade with America. He expressly mentioned that a 100% import tariff in India is paid on foreign-designed cars, and this has previously been pointed out by Tesla chief Elon Musk.
Trump recounted his conversation with PM Modi, saying, “I told Prime Minister Modi yesterday—he was here—and I said, ‘Here’s what you do. We’re going to be very fair with you.’ They charge the highest tariffs in the world, just about.”
Trump continued, saying he proposed a reciprocal approach: “I said, “Here’s what we’re going to do: reciprocal. Whatever you charge, I’m charging.” He 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.”
This step, Trump said, is aimed at compelling countries to lower their tariffs or else be met with matching tariffs by the US. The case of India’s 100% tariff on imported cars has been a point of contention in US-India trade relations for a long time. Musk specifically has raised the point that this high tariff is a big obstacle for companies such as Tesla to enter the electric vehicle market in India.
Trump reiterated his stance on trade fairness, announcing that the US will implement reciprocal tariffs on any nation that imposes duties on American imports, matching their rates precisely. He stated, “For the purpose of fairness, I’ll charge reciprocal tariffs—whatever countries charge the United States of America, we will charge them—no more, no less.”