Washington DC:
In a recent interview with Fox News, US President Donald Trump expressed strong objections to Tesla’s potential plans to establish a factory in India, labeling the move as “very unfair” to the United States. This criticism comes on the heels of Tesla’s initiatives to hire staff in India, signaling a possible entry into the Indian market.
Trump’s remarks were made during a joint interview with Tesla CEO Elon Musk, where he highlighted India’s stringent import tariffs on automobiles. The President reiterated that these tariffs, which can be as high as 100% on electric vehicles, make it nearly impossible for Tesla to sell cars in India. “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 stated.
The Indian government, in an effort to attract foreign investment, introduced a new EV policy in March that reduces import taxes to 15% if a carmaker invests at least $500 million and sets up a local factory. Despite this, Trump argued that if Tesla were to build a factory in India, it would put the US at a significant disadvantage. “Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” he emphasized.
This standoff over tariffs is part of a broader trade tension between the US and India. During Prime Minister Narendra Modi’s recent visit to the US, both leaders discussed the high tariffs and agreed to work towards an early trade deal. However, the issue remains unresolved.
Tesla has already taken steps towards entering the Indian market, identifying potential showroom locations in New Delhi and Mumbai and posting job listings for 13 mid-level positions. The company, which has long faced hurdles related to localized factory investments, regulations, and high taxes in India, is now making concrete moves to establish its presence.
Trump’s stance on reciprocal tariffs, where the US would impose the same level of tariffs on imports from other countries as those nations levy on American goods, has heightened fears of a global trade war. “Whatever they charge, we’ll charge,” Trump said, explaining his approach to tariff policies.
As Tesla prepares to enter India’s burgeoning electric vehicle market, the company’s plans are being closely watched, especially given the competitive landscape dominated by domestic manufacturers like Tata Motors and Mahindra & Mahindra.
