
Trump says it's 'very unfair' if Musk builds Tesla factory in India
Even as Musk's Tesla starts hiring in India, Trump said it is "impossible" for Musk to sell a car in India. Every country takes advantage of US via tariffs, he added
President Donald Trump has said it is “unfair” to the US if Elon Musk decides to build a Tesla factory in India to avoid import tariffs in the country.
“Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” Trump said, in the recent joint interview he did along with Elon Musk for Fox News.
During his US visit, Prime Minister Modi also met Tesla CEO Elon Musk, who has long complained about India’s import tariffs, especially, the 100 per cent tariff on EVs which help to protect local automakers such as Tata Motors and Mahindra & Mahindra. I
India has the world’s third largest auto market where EV adoption remains at a nascent stage.
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Trump slams India's high tariffs
Further, according to Trump, it is "impossible" for Elon Musk to sell a car in India. In his view, every country in the world takes advantage of the US via tariffs. "It is impossible to sell a car, practically, in, as an example, India," he stressed.
During PM Modi's US visit last week, Trump did not mince his words hitting out at India’s high car tariffs. However, both leaders agreed to work on a trade deal to resolve their tariff dispute during the bilateral meeting.
Under Trump's proposed reciprocal tariff system, the US would impose the same level of tariffs on imports from other countries similar to what those nations levy on American goods.
Trump said in the interview that he tell leaders of other countries, 'Whatever they charge, we'll charge.' "And you know what? They stop", he added.
The details of reciprocal tariffs are expected in April but experts pointed out that India’s tariff rates are higher than those of the US on most products, especially when it comes to agricultural products, textiles, and pharmaceuticals.
Also read: Tesla begins hiring for 13 roles in India after Modi's meeting with Musk in US
India's EV policy
In March last year, the Indian government introduced a new EV policy, cutting import taxes to 15 per cent for carmakers that invest at least $500 million and build a factory.
According to reports, Musk's Tesla is expected to enter the Indian market as early as April this year. The EV maker has purportedly picked locations for two showrooms in New Delhi and Mumbai and has even posted job ads for 13 mid-level roles in India.
Tesla has long been waiting in the wings to enter India's EV market but has faced several hurdles related to localised factory investments, regulations, and high taxes. Musk had raised the issue of import duties in India.