President Trump expressed in a Fox News interview aired on Tuesday, February 18, that it would be “unfair” for the United States if Tesla were to build a factory in India to avoid Indian tariffs.
During Indian Prime Minister Modi’s visit to the U.S. last week, Trump mentioned India’s high tariffs on automobiles but agreed to work towards an early trade deal and resolve the deadlock on tariff issues between the two countries.
India imposes around 100% import tariffs on electric vehicles to protect domestic car manufacturers like Tata Motors. Tesla CEO Elon Musk has long criticized India’s tariff policies.
India is the third largest automobile market globally, and the adoption of electric vehicles is still in its early stages. Trump stated that Musk is “impossible” to sell cars in India.
In March, the Indian government announced a new electric vehicle policy where import taxes will significantly decrease to 15% if car manufacturers invest at least $500 million and establish a factory.
According to Reuters on Tuesday, Tesla has selected two locations for showrooms in New Delhi and Mumbai, and has posted recruitment ads for 13 mid-level positions in India. Tesla currently does not produce any cars in India.
Trump emphasized that it would be “unfair” for the U.S. if Musk decides to build a factory in India.
“Now, if he builds a factory in India, that’s fine, but it’s unfair to us. Very unfair,” Trump said in the interview.
The Indian Ministry of External Affairs did not immediately respond to Reuters’ request for comments.
(This article is based on Reuters’ report)