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