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U.S. Urges India to Cut Car Tariffs: What's Next?

U.S. Urges India to Cut Car Tariffs: What's Next?

The United States is pushing India to lower its high tariffs on car imports as part of a trade deal, but India is hesitant to eliminate them completely right away. Currently, tariffs on imported cars can be as high as 110%, which has drawn criticism from Tesla's CEO, Elon Musk. He argues that these tariffs are among the highest globally, affecting Tesla’s plans to enter the Indian market. While the U.S. wants India to reduce tariffs significantly, India is consulting local car manufacturers before making a decision. The discussions aim to strengthen trade relations, targeting $500 billion in trade by 2030.

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