India and the United States have initiated trade talks this week. After threatening all nations, including India, with reciprocal tariffs starting April 2, the US government, as per sources, want zero-for-zero tariffs for all product lines except agriculture.

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.

President Donald Trump's administration wants India to cut tariffs on car imports as part of a potential trade agreement between the two countries, but New Delhi is reluctant to immediately eliminate such duties,