Trump spills the beans on tariff talks with PM Modi: 'Here's what we're going to do...'

US President Donald Trump greets Prime Minister Narendra Modi at the White House during his visit last week. (File Photo: PTI)

US President Donald Trump on Wednesday highlighted his conversation with Prime Minister Narendra Modi during the latter's visit to the country earlier this month. PM Modi's visit to the US came under the cloud of Trump threatening to impose reciprocal tariffs on countries, particularly in the automotive sector.

In conversation with Fox News alongside Tesla CEO and DOGE chief Elon Musk, Trump singled out India as an example to argue how nations unfairly benefit from trade relations with the US. India, he said, charges 100 percent import duty on cars, highlighting what Musk has long highlighted.

He then delved into the conversation he had with PM Modi and said: "I told Prime Minister Modi yesterday — he was here. I said, “Here’s what you do. We’re going to do — be very fair with you.” They charge the highest tariffs in the world, just about.”

“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.”

He emphasised that instead of setting an arbitrary tariff rate like 25 percent, matching the tariffs imposed by other nations would force them to reduce their duties or face equivalent charges from the US.

India imposes 100 percent tariffs on foreign-made cars, a recurring point of contention in India-US trade relations. Musk has previously pointed out that 100 percent import duty on cars made it a barrier for companies like his to enter India's EV market.

Trump announced on Friday that the US will impose reciprocal tariffs on nations that levy duties on American imports, matching their rates accordingly.

"On trade, I have decided that for the purpose of fairness, I'll charge reciprocal tariffs - meaning, whatever countries charge the United States of America, we will charge them - no more, no less. They charge us with tax and tariffs, it's very simple we will charge them with exact tax and tariffs," Trump said in the Oval Office at the proclamation signing.

He specifically mentioned India in his announcement and said India imposes more tariffs than any other country.