Days after Tesla began hiring staff in India, signaling its potential entry into the Indian market, former US President Donald Trump criticized the possibility of the electric vehicle (EV) maker building a factory in India to bypass the country’s tariffs, calling it “very unfair.” Trump made these remarks during a joint interview with Tesla CEO Elon Musk on Fox News’ Sean Hannity show.
Trump recalled raising concerns about India’s high import duties on cars during Prime Minister Narendra Modi’s recent visit to the US. Despite the criticism, both leaders agreed to work toward resolving trade disputes and finalizing an early trade deal. During his US visit, PM Modi also met with Musk, who has long criticized India’s import tariffs on EVs, which can reach up to 100%. These tariffs are designed to protect local automakers like Tata Motors in India, where EV adoption remains in its early stages.
Trump argued that it is “impossible” for Musk to sell cars in India under the current tariff structure. “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,” he said.
However, India recently introduced a new EV policy in March, reducing import taxes to 15% for carmakers that invest at least $500 million and establish local manufacturing facilities. Despite this, Trump claimed that Tesla building a factory in India would be “unfair” to the US. “Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” he stated.
India’s foreign ministry has not yet responded to requests for comment on Trump’s remarks.
Trump’s Reciprocal Tariff Proposal
Trump’s broader trade strategy includes imposing reciprocal tariffs on countries that tax US imports, a move that risks escalating global trade tensions. Under his proposed system, the US would match the tariffs imposed by other nations on American goods. “If I said 25%, they’d say, ‘Oh, that’s terrible.’ I don’t say that anymore… because I say, ‘Whatever they charge, we’ll charge.’ And you know what? They stop,” Trump explained during the interview.
Tesla’s Plans for India
Tesla is reportedly preparing to enter the Indian market as early as April this year. The company has already identified locations for showrooms in New Delhi and Mumbai and has posted job listings for 13 mid-level roles in India. However, Tesla currently does not manufacture any vehicles in the country.
The EV giant has faced numerous challenges in its efforts to enter India’s EV market, including high import duties, regulatory hurdles, and the need for localized manufacturing investments. Tesla has previously lobbied for policy incentives and lower import taxes to facilitate its entry into the world’s third-largest automotive market, where EV adoption is still in its infancy.
As Tesla moves closer to establishing a presence in India, the debate over trade policies and tariffs continues to shape the conversation around global economic relations.
