'It would be unfair to US': Trump on Musk's Tesla factory plan in India

Billionaire Elon Musk is advancing his global expansion plans, with Tesla gearing up to enter the Indian market. However, US President Donald Trump is unhappy with Musk’s plan and has raised concerns about this move.

 

In an interview with Fox News on Tuesday, Trump said if Tesla built a factory in India to avoid the country’s high tariffs, it would be “unfair” to the US.

 

“Every country in the world takes advantage of us, and they do it with tariffs... It is impossible to sell a car, practically, in, as an example, India,” Trump said.  READ: Tesla to import cars from Germany, not China in India

 

India imposes nearly 100 per cent import duty on electric vehicles (EVs), making it expensive for foreign automakers to sell their cars there. This policy protects local companies like Tata Motors. However, in March, India introduced a new EV policy, reducing import taxes to 15 per cent if a carmaker invests at least $500 million and sets up a factory in the country.

 

According to a Reuters report, Tesla has already selected locations for two showrooms in New Delhi and Mumbai. It has also posted job listings for 13 positions in India. According to the report, Musk has previously criticised India’s high tariffs, and during the interview, he confirmed, “It’s 100 per cent on auto imports.”

 

Trump, who has been pushing for higher tariffs on imports to the US, insisted that a Tesla factory in India would not be fair.” If he (Musk) built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” Trump said.  READ: What are 13 jobs the Tesla in hiring in India for?

 

During his meeting with Indian Prime Minister Narendra Modi at the White House, Trump discussed the issue of tariffs. “Here’s what we are going to do: reciprocal. Whatever you charge, I’m charging,” he stated.

 

Musk responded by saying, “It seems fair”. India’s foreign ministry has not yet commented on the matter.

 

[With inputs from agencies]