‘Very unfair’ to US if Elon Musk builds Tesla factory in India, says Donald Trump

“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,” Trump said.

Tesla CEO Elon Musk has long criticised India’s steep import duties—around 100% on electric vehicles—which protect domestic automakers like Tata Motors. However, India’s government recently introduced a new EV policy that lowers import taxes to 15% if a carmaker invests at least $500 million and sets up a local factory.

According to a Reuters report on Tuesday, Tesla has already identified locations for showrooms in New Delhi and Mumbai and has posted job ads for 13 mid-level roles in India. The company does not currently manufacture vehicles in the country.

Trump acknowledged that Musk had the right to build a factory in India but insisted that such a move would put the US at a disadvantage.

“Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” Trump said.

India’s foreign ministry has not yet responded to requests for comment.

Trump has previously pushed for reciprocal tariffs on countries that impose high duties on US imports, a stance that has heightened fears of a global trade war with both allies and adversaries.