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Federal workers sue over Elon Musk's threat to fire them
Attorneys for federal workers said Monday in a lawsuit that billionaire Trump adviser Elon Musk had violated the law with his weekend demand that employees explain their accomplishments or risk being fired.
The updated lawsuit, which was filed in federal court in California and was provided to The Associated Press, is trying to block mass layoffs pursued by Musk and President Donald Trump, including any connected to the email distributed by the Office of Personnel Management on Saturday.
The office, which functions as a human resources agency for the federal government, said employees needed to detail five things that they did last week by end of day on Monday.
“No OPM rule, regulation, policy, or program has ever, in United States history, purported to require all federal workers to submit reports to OPM,” said the amended complaint, which was filed on behalf of unions, businesses veterans, and conservation groups. It called the threat of mass firings “one of the most massive employment frauds in the history of this country.”
Musk, who is leading the Republican president's efforts to overhaul and downsize the federal government, continued to threaten federal workers on Monday morning even as confusion spread through the administration and some top officials told employees not to comply.
Trump, Musk’s cost-cutting drive echoes Clinton’s ‘Reinventing Government’—but with key differences
“Those who do not take this email seriously will soon be furthering their career elsewhere,” Musk posted early in the morning on X, his social media platform.
He also escalated Trump's demand for employees to stop working remotely.
“Starting this week, those who still fail to return to office will be placed on administrative leave,” Musk posted.
The latest round of turmoil began over the weekend, when Trump posted on Truth Social, his social media website, that “ELON IS DOING A GREAT JOB, BUT I WOULD LIKE TO SEE HIM GET MORE AGGRESSIVE."
Musk followed up by saying “all federal employees will shortly receive an email requesting to understand what they got done last week.” He claimed that "failure to respond will be taken as a resignation.” The directive echoed how the billionaire entrepreneur has managed his own companies.
The Office of Personnel Management sent out its own request afterwards.
“Please reply to this email with approx. 5 bullets of what you accomplished last week and cc your manager," the message said.
1 year ago
Musk orders federal workers to justify last week’s work in 48 Hours
In an unprecedented move, Elon Musk has given federal employees less than 48 hours to explain their achievements from the past week, causing confusion within key government agencies.
Musk, known for his cost-cutting initiatives as President Donald Trump’s adviser, announced the directive on his social media platform, X, on Saturday.
Musk posted that in line with Trump’s instructions, all federal workers would soon receive an email asking them to outline their accomplishments from the previous week.
Failure to respond would be treated as a resignation. Shortly after, many federal employees, including court staff and federal prison officials, received a brief email requesting a list of five accomplishments, with the deadline set for Monday night at 11:59 p.m.
The unusual request has created chaos within multiple federal agencies, including the National Weather Service, State Department, and federal courts, as employees scrambled to verify the authenticity of the directive. In some cases, supervisors instructed their teams not to reply.
Musk’s efforts to downsize the federal workforce have already led to widespread layoffs and buyouts in agencies such as Veterans Affairs, Health and Human Services, and the IRS. Labor unions, including the American Federation of Government Employees (AFGE), quickly denounced the order, threatening legal action and accusing Musk and Trump of disrespecting federal employees.
Musk, celebrating his new role, recently vowed to cut bureaucratic waste, using a symbolic chainsaw to represent his efforts. The Office of Personnel Management confirmed the directive but stated that individual agencies would determine their next steps. Court officials and the National Weather Service have advised employees not to respond until the email's authenticity is confirmed.
1 year ago
Trump criticises USAID funding for India, sparks diplomatic tensions
US President Donald Trump has criticised the United States Agency for International Development (USAID) for allegedly allocating funds to interfere in India's electoral process, questioning why American taxpayers' money was being sent to the country.
Speaking at the Conservative Political Action Conference (CPAC) in Washington on Sunday, President Trump alleged that India already benefits from high tariffs on American goods and does not require financial assistance for its elections.
"Eighteen million dollars for helping India with its elections. Why the hell? Why don’t we just go to old paper ballots and let them help us with our elections, right? Voter ID. Wouldn’t that be nice? We’re giving money to India for elections. They don’t need money," Trump remarked.
The figure quoted by Trump could not be independently verified. A prior report from the Elon Musk-led Department of Government Efficiency (DOGE) suggested that $21 million had been allocated for "voter turnout" in India.
"They take advantage of us pretty good. One of the highest tariffed nations in the world. We try and sell something, they have a 200 per cent tariff. And then we’re giving them a lot of money to help them with their election," he continued.
India Responds to Trump's Allegations
India's External Affairs Minister S Jaishankar addressed the concerns raised by Trump, stating that the government was looking into the matter.
Trump says $29 million in USAID money went to firm 'with just 2 people'
"Some information has been put out there by the Trump administration people, and obviously, that is concerning. I think, as a government, we’re looking into it. My sense is that the facts will come out. USAID was allowed here in good faith, to do good faith activities; now, suggestions are being laid out from America that there are activities which are in bad faith. It’s worrisome, and if there’s something to it, then the country should know who the people are involved in it," Jaishankar said.
Meanwhile, the opposition Congress party has demanded a white paper on all foreign aid received by India from developmental agencies. Congress has also called for legal action against those propagating what it terms "baseless allegations" of foreign interference in Indian democracy.
Congress spokesperson Pawan Khera countered Trump’s claim, stating, "More Indian news media outlets have fact-checked the claim by BJP and Modi government’s minister as untrue. Funds went to Bangladesh, not India; although India received USAID funds, it was not for increasing voter turnout."
Allegations of Funding in Bangladesh
In addition to his claims about India, Trump also alleged that an unnamed firm in Bangladesh had received $29 million in USAID funding.
"Got USD 29 million. They got a cheque. Can you imagine? You have a little firm, you get 10,000 here, 10,000 there, and then we get 29 million from the United States government. There are two people working in that firm... I think they’re very happy, they’re very rich. They’ll be on the cover of a very good business magazine pretty soon for being great scammers," Trump alleged.
Congress has urged Prime Minister Narendra Modi to personally address these claims and refute the allegations. The party has also criticised the ruling BJP, accusing it of exploiting Trump’s comments to advance conspiracy theories.
Judge blocks Trump’s plan to place 2,200 USAID employees on paid leave
"There is no record of a Consortium for Elections and Political Process Strengthening (CEPPS) programme matching the US government’s description in India. CEPPS did have a $21 million USAID contract, but it was for Bangladesh, not India," Khera stated.
BJP Dismisses Congress’s Defence
BJP leader Ajay Alok dismissed Congress’s statements as "baseless," asserting that the Modi government has significantly curtailed foreign aid flows.
"We have already shown that the government got $2,119 million between 2004-14 and just $1.5 million between 2014-25. We are shutting down these things. The Indian government is now acting, the US government has issued a list of who has got the money from where... this is part of a deep state. The Bharat Jodo Yatra was also being funded from this money," Alok claimed.
With both the Indian and Bangladeshi governments yet to issue a formal statement on the matter, the controversy is likely to continue, further complicating diplomatic relations between India and the United States ahead of key elections in both nations.
Source: Agencies
1 year ago
Trump revels in mass federal firings and jeers at Biden before adoring conservative crowd
President Donald Trump said Saturday that “nobody's ever seen anything" like his administration's sweeping effort to fire thousands of federal employees and shrink the size of government, congratulating himself for “dominating” Washington and sending bureaucrats “packing.”
Addressing an adoring crowd at the Conservative Political Action Conference just outside the nation's capital, Trump promised, “We’re going to forge a new and lasting political majority that will drive American politics for generations to come.”
The president argues that voters gave him a mandate to overhaul government while cracking down on the U.S.-Mexico border and extending tax cuts that were the signature policy of his first administration.
Trump clicked easily back into campaign mode during his hour-plus speech, predicting that the GOP will continue to win and defy history, which has shown that a president’s party typically struggles during midterm elections. He insisted of Republicans, “I don’t think we’ve been at this level, maybe ever.”
“Nobody's ever seen anything like this," Trump said, likening his new administration's opening month to being on a roll through the first four holes of a round of golf — which he said gives him confidence for the fifth hole.
Trump has empowered Elon Musk to help carry out the firings, and the billionaire suggested Saturday that more might be coming.
“Consistent with President @realDonaldTrump’s instructions, all federal employees will shortly receive an email requesting to understand what they got done last week,” Musk posted on X, which he owns. “Failure to respond will be taken as a resignation.”
Later, an “HR” email was sent to federal workers across numerous agencies titled “What did you do last week” and asking that recipients “reply with approx. 5 bullets of what you accomplished last week and cc your manager.” It cautioned against sending classified information, and gave a deadline of Monday at 11:59 p.m. ET.
Trump also said during the speech that he'd carry out harsher immigration policies. But those efforts have so far largely been overshadowed by his administration's mass federal firings. He announced that one entity with a workforce that had been significantly reduced, the U.S. Agency for International Development, would have its Washington office taken over by Customs and Border Protection officials.
Trump says $29 million in USAID money went to firm 'with just 2 people'
“The agency’s name has been removed from its former building,” he said.
The president also repeated his previous promises to scrutinize the country's gold depository at Fort Knox.
“Would anybody like to join us?” he asked to cheers from the crowd at the suggestion that administration forces might converge on the complex. “We want to see if the gold is still there.”
But Trump also devoted large chunks of his address to reliving last year's presidential race, jeering at former President Joe Biden and mispronouncing the first name of former Vice President Kamala Harris — his Election Day opponent — gleefully proclaiming, “I haven’t said that name in a while.”
He went on to use an expletive to describe Biden’s handling of border security, despite noting that evangelical conservatives have urged him not to use foul language.
Trump had kinder words for Chinese President Xi Jinping, saying “I happen to like” him, while saying, “we’ve been treated very unfairly by China and many other countries.”
On the sidelines of the conference, Trump met with conservative Polish President Andrzej Duda amid rising tensions in Europe over Russia’s war in Ukraine. After he took the stage, Trump saluted Duda and another atendee, Argentine President Javier Milei.
Trump called Duda “a fantastic man and a great friend of mine” and said “you must be doing something right, hanging out with Trump." He noted that Milei was “a MAGA guy, too, Make Argentina Great Again."
Poland is a longtime ally of Ukraine. Trump upended recent U.S. policy by dispatching top foreign policy advisers to Saudi Arabia for direct talks with Russian officials that were aimed at ending fighting in Ukraine.
Those meetings did not include Ukrainian or European officials, which has alarmed U.S. allies. Trump is meeting on Monday at the White House with French President Emmanuel Macron and Thursday with British Prime Minister Keir Starmer.
Trump also has begun a public tiff with Ukrainian President Volodymyr Zelenskyy, whom the U.S. president called a “dictator” while falsely suggesting that Ukraine started the war — though on Friday Trump acknowledged that Russia attacked its neighbor.
Trump administration takes aim at $4b in funding for California high-speed rail
Trump told the CPAC crowd, “I’m dealing with President Zelenskyy. I’m dealing with President Putin” and added of fighting in Ukraine, "It affects Europe. It doesn’t really affect us.”
Zelenskyy has said Trump is living in a Russian-made “disinformation space.”
For much of the time since Russia invaded in February 2022, the United States, under Biden, pledged that Ukraine would play in any major effort to end the fighting, vowing “nothing about Ukraine without Ukraine.” Trump's administration has dispensed with that notion, as the Republican president has accelerated his push to find an endgame to the war.
“I think we’re pretty close to a deal, and we better be close to a deal,” Trump said Saturday.
White House press secretary Karoline Leavitt subsequently told reporters that Trump and his team were focused on negotiations to end the war and “the President is very confident we can get it done this week,” though such a tight timeline seems difficult.
Leavitt is one of three administration officials who face a lawsuit from The Associated Press on First- and Fifth-Amendment grounds.
The AP says the three are punishing the news agency for editorial decisions they oppose. The White House says the AP is not following an executive order to refer to the Gulf of Mexico as the Gulf of America.
Later, Trump hosted a formal dinner at the White House for governors from around the country who were in Washington for a meeting of the National Governors Association. Trump said Republicans and Democrats can always call him and joked that he might address Democratic concerns first.
“Let us all recommit ourselves to strengthening America and making it something even more special than it has been," Trump said. “And we’re going to be one united nation, and maybe together, this is going to be easier if we start uniting."
The president, who wore a tuxedo and bow tie, was accompanied by first lady Melania Trump, who had her own tuxedo but no tie. Trump told those gathered that his wife helped organize the event.
“She worked very hard on making sure everything was beautiful,” he said to applause.
Trump also said he'd give a tour of the Lincoln Bedroom after the meal to anyone who wished to see it.
Ukrainians rally around their president after Trump seeks to denigrate him
“I think maybe it's like the most important room in the whole country," he said. “The most important bedroom definitely.”
1 year ago
Trump administration takes aim at $4b in funding for California high-speed rail
The Trump administration is once again targeting California's controversial high-speed rail project, with federal transportation officials on Thursday announcing an investigation and possible withdrawal of about $4 billion in federal funding.
Voters first approved $10 billion in bond money in 2008 for a project designed to shuttle riders between San Francisco and Los Angeles in less than three hours. It was slated to cost $33 billion and be finished by 2020. But the project has been beset by funding challenges, cost overruns and delays.
Now, state officials are focused on a 171-mile (275-kilometer) stretch connecting the Central Valley cities of Bakersfield and Merced, which is set to be operating by 2033. The entire San Francisco to Los Angeles line will now cost an estimated $106 billion to finish and officials hope to complete it in the next 20 years if there is money.
“I am directing my staff to review and determine whether the (California High-Speed Rail Authority) has followed through on the commitments it made to receive billions of dollars in federal funding. If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States,” Transportation Secretary Sean Duffy said at a news conference in Los Angeles.
President Donald Trump cancelled nearly $1 billion in federal funding for the high-speed rail project in 2019, during his first term. The Biden administration later restored the funding and, in December 2023, allocated $3.3 billion more.
Losing that money would be a major blow to the project. The rail authority's most recent business plan counts on receiving up to $8 billion in federal money to help close a funding gap.
Ian Choudri, CEO of the California’s High-Speed Rail Authority, which oversees planning and funding for the project, said he welcomes the investigation.
“With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project,” Choudri said.
He said the project has created nearly 15,000 jobs and that more than 50 major structures have been completed so far.
Several Republican Congress members have taken aim at the project over its costs. On Thursday, Republican Rep. Kevin Kiley, who represents 3rd Congressional District that stretches alongside much of the state’s border with Nevada and includes Sacramento’s northeastern suburbs, called the California high-speed rail “the worst public infrastructure failure in U.S. history.”
Apple unveils a souped-up and more expensive version of its lowest priced iPhone
"There is no plausible scenario where the cost to federal or state taxpayers can be justified. It is past time to stop throwing good money after bad, and we must formally end this project,” said Kiley, who introduced a bill earlier this year to make the project ineligible for further federal funding.
Kiley joined Duffy in Los Angeles' Union Station for the announcement of the probe. Those present were interrupted at times by booing by about 30 demonstrators. The protesters also chanted “build the rail!” and held up signs that read “CA has no king” and “Don’t delay our train.”
Eli Lipmen, executive director of Move LA, an organization that advocates for efficient public transit systems, said the high-speed train project remains popular among many Californians.
“They said they’re going to start an investigation, but come on, this is a sham investigation,” Lipmen, who was at Union Station during the announcement, told KABC-TV.
Greg Regan and Shari Semelsberger, president and secretary-treasurer of the Transportation Trades Department coalition that includes all the country's rail unions, said the project is the most ambitious and innovative transportation project in the country and urged Trump to become “a Builder-in-Chief by bringing high-speed rail to America.”
“Building ambitious projects requires bold leadership and a commitment to getting the job done. Just last year, President Trump complained that the United States does not have bullet trains similar to Japan. We agree with him that it is past time for our country to have these kinds of modern, efficient, high-capacity transportation systems," they said in a statement.
1 year ago
New FBI director Kash Patel plans to relocate up to 1,500 employees
New FBI Director Kash Patel has told senior officials that he plans to relocate up to 1,000 employees from Washington to field offices around the country and move an additional 500 to a bureau facility in Huntsville, Alabama, according to a person with knowledge of the discussions.
The plans were communicated Friday, the same day Patel was sworn in at the White House, and are in keeping with his oft-stated vision of reducing the size of the FBI’s footprint in Washington and having more of a presence in offices in other cities.
“Director Patel has made clear his promise to the American public that FBI agents will be in communities focused on combatting violent crime. He has directed FBI leadership to implement a plan to put this promise into action,” the FBI said in a statement that did not provide any specifics.
The person who discussed Patel’s vision did so on condition of anonymity to describe plans that have not been made public.
Patel was confirmed by the Senate on Thursday by a 51-49 margin, with two Republican lawmakers, Susan Collins of Maine and Lisa Murkowski of Alaska, breaking party ranks and voting against him.
US Senate moves forward on confirming Kash Patel as FBI director
At his swearing-in ceremony, Patel called the opportunity to lead the nation’s premier federal law enforcement agency the “greatest honor” of his life.
“I think he’ll go down as the best ever at that position,” President Donald Trump told reporters Friday ahead of the ceremony, which was conducted by Attorney General Pam Bondi and attended by Republican supporters in Congress, including Sen. Ted Cruz of Texas and Rep. Jim Jordan of Ohio.
Trump added that the "agents love this guy."
Patel will inherit an FBI gripped by turmoil as the Justice Department over the past month has forced out a group of senior bureau officials and made a highly unusual demand for the names of thousands of agents who participated in investigations related to the Jan. 6, 2021, riot at the U.S. Capitol.
Democrats had for weeks sounded the alarm about the appointment, saying they fear Patel will operate as a loyalist for Trump and abuse the FBI's law enforcement powers to go after the president's adversaries. They've cited past comments, such as his suggestion before he was nominated that he would “come after” anti-Trump “conspirators” in the government and media.
Patel sought to assuage those concerns at his confirmation hearing last month, saying he intended to follow the Constitution and had no interest in pursuing retribution, though he also said at his swearing-in Friday that reporters had written “fake, malicious, slanderous and defamatory” stories about him.
Meanwhile, Republicans angry over what they see as law enforcement bias against conservatives during the Democratic Biden administration, as well as criminal investigations into Trump, have rallied behind Patel as the right person for the job.
Patel has repeatedly spoken of his desire to implement major changes at the FBI. That includes a smaller presence in Washington — he once said he thought the decades-old FBI headquarters in Washington should be closed down and reopened as a “museum of the deep state” — and a renewed emphasis on the bureau’s traditional crime-fighting duties rather than the intelligence-gathering work that has come to define its mandate over the past two decades as national security threats have proliferated.
Trump supports giving Americans part of DOGE savings as dividends
He said Friday that the FBI's “national security mission” was equally important as its efforts to fight violent crime and drug overdoses.
“Anyone that wishes to do harm to our way of life and our citizens, here and abroad, will face the full wrath of the DOJ and FBI," Patel said. "If you seek to hide in any corner of this country or planet, we will put on the world’s largest manhunt and we will find you and we will decide your end-state.”
A former Justice Department counterterrorism prosecutor, Patel was selected in November to replace Christopher Wray, who was picked by Trump in 2017 and who resigned at the conclusion of the Biden administration to make way for his chosen successor.
1 year ago
Engineering company settles Flint water lawsuits for $53m
An engineering company said Friday it has agreed to pay $53 million to settle all remaining lawsuits that alleged some blame for lead-contaminated water in Flint, Michigan, a decade ago.
The deal by Veolia North America and Flint residents comes on top of $26.3 million in previous settlements with the company, and $626 million from the state of Michigan and other parties.
Veolia has denied responsibility for the contamination and repeatedly noted that it was briefly hired by Flint as a consultant months after the city began pulling water from the Flint River in 2014. The water was not treated to reduce corrosion, causing lead to leach from old pipes.
Critics claimed Veolia could have done much more before then-Gov. Rick Snyder and Flint switched the city's water source back to a regional supplier in fall 2015. By that time, tests showed elevated lead levels in children.
Winter-weary East Coast hit with another storm as temperatures plunge elsewhere
“This final settlement is in no way an admission of responsibility, but the best resolution to avoid decades of costly, unproductive, and time-consuming litigation, and to bring closure for all parties involved,” Veolia said.
The company said the Flint water crisis was “caused by government officials.” Veolia said it had no role in the water switch or running the Flint water plant and was told that the water was meeting standards.
The $53 million settlement will be distributed to approximately 26,000 people represented by law firms, the Michigan attorney general's office said. As part of the deal, the state will dismiss its own separate lawsuit against Veolia.
“After years of drawn-out legal battles, this settlement finally closes a chapter for Flint residents,” Attorney General Dana Nessel said.
1 year ago
US Senate moves forward on confirming Kash Patel as FBI director
The Senate was poised to vote on Thursday on whether to confirm Kash Patel as the director of the FBI, a decision that could install him at the helm of the country’s leading federal law enforcement agency despite Democratic concerns over his qualifications and the likelihood that he would follow President Donald Trump’s directives.
Patel secured approval from the Senate Judiciary Committee last week with a 12-10 party-line vote and is scheduled for consideration by the Republican-controlled Senate on Thursday afternoon, reports AP.
Trump's FBI director to face skeptical Democrats at Senate confirmation hearing
Barring defections from more than three Republican senators—an unlikely scenario—he is expected to be confirmed. Trump has already managed to get most of his nominees approved despite initial skepticism from some Republicans.
A staunch Trump ally who has strongly criticised the agency he is set to lead, Patel would take over an FBI embroiled in turmoil. The Justice Department has, in the past month, forced out several senior FBI officials and made the unusual demand for the names of thousands of agents involved in investigations related to the January 6, 2021, attack on the U.S. Capitol.
Trump has indicated that he expects some of those agents to be dismissed.
Republicans, frustrated by what they perceive as law enforcement bias against conservatives under the Biden administration and ongoing criminal investigations into Trump, have rallied behind Patel as the right choice. Meanwhile, Democrats have raised concerns over his lack of management experience compared to previous FBI directors and pointed to controversial past remarks that, they argue, call his judgment into question.
“My prediction is if you vote for Kash Patel, more than any other confirmation vote you make, you will come to regret this one to your grave,” said Democratic Sen. Chris Murphy of Connecticut this week.
Patel’s past statements, made in hundreds of podcasts over the past four years, have included calling law enforcement officials who investigated Trump “criminal gangsters,” referring to some January 6 rioters as “political prisoners,” and vowing to pursue anti-Trump “conspirators” within the government and media.
FBI Chief Wray plans to resign before Trump takes office in January
At his confirmation hearing last month, Patel argued that Democrats were misrepresenting some of his remarks or failing to grasp the broader context. He also defended his past proposal to shut down the FBI headquarters in Washington and convert it into a museum dedicated to the so-called deep state. Additionally, Patel rejected the notion that a list of government officials in his book, whom he identified as part of a “deep state,” was an “enemies list,” calling that claim a “total mischaracterization.”
FBI directors are appointed for 10-year terms to shield them from political pressures and prevent them from becoming too aligned with any single president or administration. Patel was nominated in November to succeed Christopher Wray, who was appointed by Trump in 2017 and served for more than seven years but repeatedly clashed with the president and was perceived as insufficiently loyal. Wray resigned before Trump’s return to office.
A former federal defender and Justice Department counterterrorism prosecutor, Patel first gained Trump’s attention during his initial term when, as a staffer on the Republican-led House Intelligence Committee, he helped draft a memo sharply criticising the FBI’s investigation into ties between Russia and Trump’s 2016 campaign.
Patel later joined Trump’s administration, serving as a counterterrorism official at the National Security Council and later as chief of staff to the defense secretary.
1 year ago
Trump supports giving Americans part of DOGE savings as dividends
US President Donald Trump has said he supports the idea of distributing some of the savings from Elon Musk's Department of Government Efficiency to US citizens as a form of dividend, reports AP.
Speaking at an investment conference in Miami on Wednesday, the President revealed that the administration is considering a proposal in which 20% of the savings generated by DOGE's cost-reduction initiatives would be returned to the public, while another 20% would go towards reducing the national debt.
Trump calls Tesla’s India expansion ‘unfair’ amid tariff concerns
Trump also suggested that these potential dividend payments would encourage citizens to report wasteful government spending.
“They’ll report it themselves,” Trump remarked. “They’ll be part of the process of saving us money.”
On his way back to Washington aboard Air Force One, Trump was asked by a reporter about Musk's proposal.
“I love it," he responded.
Trump faces backlash for calling himself ‘King’
The day before, Musk had posted on his social media platform that he would “check with the President” regarding a suggestion to launch a “DOGE Dividend” to refund taxpayers with part of the savings from DOGE. The initiative has already resulted in thousands of federal government employees being fired or laid off.
1 year ago
Trump calls Tesla’s India expansion ‘unfair’ amid tariff concerns
US President Donald Trump has criticised Tesla’s decision to establish a factory in India, calling it “very unfair” as he continues to push for higher tariffs.
During an interview with Fox News’ Sean Hannity, featuring Tesla CEO Elon Musk, Trump expressed his dissatisfaction with India’s trade policies. His remarks follow Musk’s recent meeting with Indian Prime Minister Narendra Modi in the US.
Trump has long accused various countries of imposing tariffs that disadvantage American businesses, citing India’s policies as an example.
Addressing Musk directly, Trump said, “It’s practically impossible for him to sell a car in India.” Musk promptly interjected, saying that India imposes an import duty of 100 per cent on automobiles.
However, India currently levies a 15 per cent import duty on electric vehicles (EVs) priced above $35,000 under specific conditions. Additionally, the country recently reduced customs duty on high-end vehicles costing over $40,000 from 110 per cent to 70 per cent.
Trump faces backlash for calling himself ‘King’
Despite this, Trump maintained that allowing Tesla to set up a factory in India was unjust to the US. “If he wants to build a factory there, that’s fine. But it’s unfair to us,” he said.
He also claimed to have discussed the issue with Modi, suggesting the need for a “fair” approach to trade.
As the discussion continued, Hannity asked Trump whether India’s tariff rate was 36 per cent. Trump responded that it was “much, much higher.”
Musk reaffirmed his stance, repeating that auto import tariffs in India stood at 100 per cent. He also supported Trump’s demand for a “level playing field” in trade.
Trump concluded by asserting that the US would benefit from upcoming policy changes, predicting significant business growth.
Meanwhile, Tesla has already started preparing for its entry into the Indian market. The company has identified showroom locations in New Delhi and Mumbai and has begun hiring for 13 mid-level positions, according to a report by Reuters.
With inputs from Indian media
1 year ago