Donald Trump slams India’s 'over 100% auto tariffs', proposes no tax on US-made cars

In a recent announcement, Donald Trump stated that cars made in America will be tax-free, pointing out India's tariffs on US automobiles  

Riya R Alex
Updated5 Mar 2025, 11:57 AM IST
 President Donald Trump addresses a joint session of Congress at the U.S. Capitol.
President Donald Trump addresses a joint session of Congress at the U.S. Capitol.(via REUTERS)

Donald Trump announced that there would be no taxes on cars, provided they are manufactured in America, while highlighting how India charges the United States tariffs on the auto sector.

"If you don't make your product in America, however, under the Trump administration, you will pay a tariff, and in some cases, a rather large one," Trump said. 

“Other countries have used tariffs against us for decades and now it's our turn to start using them against those other countries. On average, the European Union, China, Brazil, India, Mexico and Canada — have you heard of them? — and countless other nations charge us tremendously higher tariffs than we charge them. It's very unfair,” he added.

 

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Trump on India

"India charges us auto tariffs higher than 100%," he continued. “China's average tariff on our products is twice what we charge them. And South Korea's average tariff is four times higher. Think of that. Four times higher,” Trump said.

"And we give so much help militarily and in so many other ways to South Korea but that's what happens. This is happening by friend and foe. The system is not fair to the United States and never was. April 2, reciprocal tariffs kick in, and whatever they tariff us, other countries, we will tariff them," the President said.

 

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“That's reciprocal. Back and forth. Whatever they tax us, we will tax them,” Trump said.

Reciprocal tariff policy

Earlier, US President Donald Trump confirmed that reciprocal tariffs will take effect on April 2. In February, Trump announced a new reciprocal trade policy aimed at restoring fairness in global trade.

 

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According to the policy, the United States plans to levy tariffs on imports that match those of other countries. The 78-year-old Republican President said that the US would charge a reciprocal tariff, meaning the tariffs would mirror those imposed by other nations.

 

 

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