As Tesla eyes entry into India, the US is reportedly pushing for the removal of high car import tariffs under a proposed trade deal. While India is open to reductions, it is unwilling to lower tariffs to zero.

The United States wants India to eliminate tariffs on car imports under a proposed trade deal between the two nations, but New Delhi is reluctant to immediately bring down such duties to zero even as it considers further cuts,

The United States is pushing India to eliminate taxes on imported cars under a new trade deal. Currently, the country charges extremely high taxes on imported vehicles, sometimes going up to 110%. This has made it difficult for foreign carmakers to sell their vehicles in the country.