In a sharp reaction to Elon Musk’s recent meeting with Prime Minister Narendra Modi, US President Donald Trump has criticized India’s high tariffs, labeling it a “very hard place” for businesses to thrive.

“India charges tremendous tariffs,” Trump said, adding that India is traditionally among the countries with the highest tariffs. He pointed out that while there are a few smaller nations that impose higher tariffs, India is at the top of the list.

Trump, in his statement, cited the example of Harley Davidson, emphasizing how the company struggled to sell motorbikes in India due to the high taxes and tariffs. He recalled how Harley Davidson was forced to build in India because of the overbearing tariff on their motorcycles.

Trump’s Criticism and Tariff Issues

Trump’s remarks came after the billionaire entrepreneur Elon Musk met with Prime Minister Modi to discuss space, mobility, technology, and energy. Tesla, Musk's electric vehicle company, is looking to expand its footprint in India. However, high tariffs have been a stumbling block for many foreign companies looking to do business in the country.

In his reciprocal tariffs announcement, Trump had also mentioned India as one of the countries facing tariffs in return for similar measures taken by the US. This statement highlights the ongoing trade tensions between the two nations, with India’s tariff policies being a significant point of contention.

PM Modi and Musk Discuss Broader Collaboration

Despite the trade concerns, the meeting between PM Modi and Elon Musk was seen as a positive step toward strengthening Indo-US ties in various sectors. The two leaders discussed a wide range of topics, including space exploration, artificial intelligence, and sustainable development. They also explored opportunities for increased collaboration between US and Indian entities in innovation and emerging technologies.

In addition to the discussion on business and technology, the meeting also touched on governance. PM Modi highlighted India’s efforts towards reform and emphasized the “Minimum Government, Maximum Governance” principle. This phrase underscores Modi’s commitment to streamlining the Indian government’s operations and reducing bureaucratic interference.

SpaceX and Future Opportunities

One of the key highlights of the meeting was the potential for further space collaboration between India and the US. SpaceX, Musk’s space exploration company, has made significant strides in technology, and both countries are keen on deepening their cooperation in the field of space research and exploration.

The Ministry of External Affairs issued a statement noting that the discussions also covered artificial intelligence, sustainable development, and the future of entrepreneurship between Indian and US entities.

The Bigger Picture of US-India Relations

While Trump’s criticism of India’s tariffs casts a shadow on the otherwise positive relationship, it also underscores the need for both nations to find common ground on trade and business policies. As both countries continue to collaborate on innovation, space exploration, and clean energy, resolving issues like tariffs will be crucial for fostering stronger economic ties.

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