'Every Country Takes Advantage Of US': Donald Trump Calls Tesla's India Factory Plans 'Very Unfair'. See Musk's Reaction
Days after Tesla CEO Elon Musk met Prime Minister Narendra Modi, former US President Donald Trump voiced concerns over the electric vehicle (EV) maker’s potential factory setup in India. In an interview with Fox News' Sean Hannity, Trump criticised the existing tariff structures, calling them "very unfair" to the United States. During the discussion, Trump reiterated his long-standing stance on trade policies, arguing that multiple nations impose high tariffs on American goods while the US maintains significantly lower import duties in comparison. "Every country in the world takes advantage of us, and they do it with tariffs. They make it impossible for him to sell a car, practically, in, as an example, India. I don’t know if that’s true or not, but I think—" he said. Elon Musk interjected, confirming, "The tariffs are like 100 per cent import duty." Trump echoed Musk’s concern, emphasising that the high tariff rates make it difficult for US companies to compete fairly in international markets. A White House fact sheet highlights that India imposes a 100 per cent tariff on American motorcycles, while the US levies only 2.4 per cent on Indian motorcycles. Trump pointed out that while India would benefit from Tesla establishing a manufacturing unit locally, such an arrangement would still be "very unfair" to the US. Tesla's India Expansion Plans Take Shape Despite the concerns raised by Trump, Tesla appears to be moving forward with its India plans. The company has begun recruiting for retail and administrative positions in Mumbai, signaling a renewed interest in the Indian market. According to sources, Tesla's initial strategy involves importing EVs for sale through showrooms in major cities like Mumbai and Delhi. The EV giant has listed 13 job vacancies across its website and LinkedIn, including positions for store management, customer support, and delivery operations. This move indicates a more structured approach after previous attempts to enter the Indian market faced setbacks. Tesla has been evaluating India as a key market for years, and recent policy changes seem to have provided a more favorable environment. The Indian government introduced an EV incentive scheme last year, reducing import duties to 15 per cent for companies investing a minimum of $500 million and commencing local production within three years. Under this scheme, eligible manufacturers can import up to 8,000 EVs annually at the reduced tariff rate. Additionally, the latest Union Budget included a reduction in import duty from 100 per cent to 70 per cent for EVs priced above $40,000 (around Rs 35 lakh). However, the introduction of a 40 per cent Agriculture Infrastructure and Development Cess (AIDC) has offset some of the benefits, maintaining a significant tax burden on imports. Musk has previously expressed interest in producing an affordable Tesla model in India, potentially priced between Rs 25-30 lakh, with an eye on regional exports. The Indian government is reportedly optimistic about Tesla's plans, particularly following Apple’s success in manufacturing and exporting iPhones from India. If Tesla proceeds with local production, it could mark a significant shift in the country’s EV landscape. While Trump’s criticism sheds light on broader trade disparities, Tesla’s India entry remains a work in progress, with developments expected in the coming months.
Days after Tesla CEO Elon Musk met Prime Minister Narendra Modi, former US President Donald Trump voiced concerns over the electric vehicle (EV) maker’s potential factory setup in India. In an interview with Fox News' Sean Hannity, Trump criticised the existing tariff structures, calling them "very unfair" to the United States.
During the discussion, Trump reiterated his long-standing stance on trade policies, arguing that multiple nations impose high tariffs on American goods while the US maintains significantly lower import duties in comparison. "Every country in the world takes advantage of us, and they do it with tariffs. They make it impossible for him to sell a car, practically, in, as an example, India. I don’t know if that’s true or not, but I think—" he said.
Elon Musk interjected, confirming, "The tariffs are like 100 per cent import duty." Trump echoed Musk’s concern, emphasising that the high tariff rates make it difficult for US companies to compete fairly in international markets.
A White House fact sheet highlights that India imposes a 100 per cent tariff on American motorcycles, while the US levies only 2.4 per cent on Indian motorcycles. Trump pointed out that while India would benefit from Tesla establishing a manufacturing unit locally, such an arrangement would still be "very unfair" to the US.
Tesla's India Expansion Plans Take Shape
Despite the concerns raised by Trump, Tesla appears to be moving forward with its India plans. The company has begun recruiting for retail and administrative positions in Mumbai, signaling a renewed interest in the Indian market. According to sources, Tesla's initial strategy involves importing EVs for sale through showrooms in major cities like Mumbai and Delhi.
The EV giant has listed 13 job vacancies across its website and LinkedIn, including positions for store management, customer support, and delivery operations. This move indicates a more structured approach after previous attempts to enter the Indian market faced setbacks.
Tesla has been evaluating India as a key market for years, and recent policy changes seem to have provided a more favorable environment. The Indian government introduced an EV incentive scheme last year, reducing import duties to 15 per cent for companies investing a minimum of $500 million and commencing local production within three years. Under this scheme, eligible manufacturers can import up to 8,000 EVs annually at the reduced tariff rate.
Additionally, the latest Union Budget included a reduction in import duty from 100 per cent to 70 per cent for EVs priced above $40,000 (around Rs 35 lakh). However, the introduction of a 40 per cent Agriculture Infrastructure and Development Cess (AIDC) has offset some of the benefits, maintaining a significant tax burden on imports.
Musk has previously expressed interest in producing an affordable Tesla model in India, potentially priced between Rs 25-30 lakh, with an eye on regional exports. The Indian government is reportedly optimistic about Tesla's plans, particularly following Apple’s success in manufacturing and exporting iPhones from India. If Tesla proceeds with local production, it could mark a significant shift in the country’s EV landscape.
While Trump’s criticism sheds light on broader trade disparities, Tesla’s India entry remains a work in progress, with developments expected in the coming months.
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