In his recent address to Congress, President Donald Trump asserted that India imposes auto tariffs “higher than 100%.”
However, recent policy changes indicate that India’s highest import tariff on automobiles has been reduced to 70%. The latest Indian budget slashed basic customs duties on several items, including luxury cars, reducing the peak import tariff from 150% to 70%.
Therefore, India’s current maximum auto import tariff is 70%, not exceeding 100% as claimed by President Trump.
It’s important to note that while the basic customs duty has been reduced, India has introduced an Agriculture Infrastructure Development Cess (AIDC) on certain items, which could affect the overall taxation on imports.
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However, even considering the AIDC, the total import tax on automobiles does not surpass 100%.
In summary, President Trump’s claim of India charging auto tariffs higher than 100% does not align with the current tariff structure, where the highest applicable rate is 70%.
