President Donald Trump displeased with Elon Musk’s decision to set up car manufacturing unit in India and ignoring US
US President Donald Trump has criticized Tesla CEO Elon Musk’s decision to establish a car manufacturing facility in India, calling it ‘unfair’ to the United States. Trump made these remarks during a joint interview with Musk on Fox News, hosted by Sean Hannity, which aired on Tuesday.
During the discussion, Trump acknowledged the challenges Musk faces in selling US-manufactured cars in India due to the country’s high tariffs. He pointed out that these tariffs make it nearly impossible for American-made vehicles to enter the Indian market. “Every country takes advantage of us through tariffs… It is practically impossible to sell a car in India,” Trump stated.
Musk agreed with Trump’s assessment, noting that Indian import duties on foreign cars can be as high as 100%. While Trump admitted that Musk setting up a factory in India would be beneficial for Tesla, he maintained that it was ultimately disadvantageous for the US. “If he builds the factory in India, that’s okay, but it is unfair to us. It’s very unfair,” Trump added.
These comments followed Tesla’s recent recruitment drive in India, signaling the company’s imminent entry into the market. Tesla posted several job openings on LinkedIn on Monday, seeking candidates for roles in customer support, services, operations, and retail, with positions available in Mumbai and Delhi.
The Modi government has taken steps to facilitate Tesla’s entry by lowering import duties on electric vehicles. In this year’s budget, the duty on EVs priced above $40,000 was reduced from 125% to 70%. Additionally, companies committing an investment of ₹500 million over five years can benefit from an even lower import duty of 15% on Completely Knocked Down (CKD) units valued at $35,000 or above.
It is anticipated that Tesla will leverage these duty concessions while setting up its operations in India. Musk has previously criticized India’s high tariffs on multiple occasions, citing them as the primary barrier preventing Tesla cars from being sold in the country.
Trump also discussed the issue of tariffs with Indian Prime Minister Narendra Modi during Modi’s recent visit to the US. Trump emphasized the need for reciprocal tariffs, telling Modi, “I told Prime Minister Modi yesterday – he was here. I said, here’s what we’re going to do – we’re going to be very fair. Whatever you charge, I’m charging.” Musk supported this stance, calling it fair. Since taking office last month, Trump has been advocating policies to strengthen domestic manufacturing and has proposed imposing reciprocal tariffs on nations that impose duties on US imports. However, he also expressed a willingness to negotiate an early trade agreement to address tariff concerns between India and the US.
