Donald Trump Calls Elon Musk’s Tesla Factory in India “Very Unfair”

the announcement of its new EV policy in March, the Indian government drastically lowered import taxes to 15% for manufacturers that set up a facility and invest at least $500 million.

 

 

Washington, DC: Just days after the company started employing people in India, its potential entry into the market, US President Donald Trump said that any plans the electric vehicle manufacturer might have to build a factory there to circumvent the country’s tariffs would be “very unfair.” The comments were delivered by the US President and Tesla CEO Elon Musk in a joint interview with Sean Hannity of Fox News.

During Prime Minister Narendra Modi’s visit to the United States last week, President Trump noted that he criticized India’s high vehicle tariffs but also committed to working toward an early trade agreement and ending their tariff impasse.

During his visit to the United States, PM Modi met with Tesla CEO Elon Musk. Musk has long blasted India for enforcing over 100% import levies on EVs, which protect homegrown firms like Tata Motors in the third-largest auto market in the world, where EV adoption is still in its early stages.

Mr. Trump claims it is “impossible” for Elon Musk to sell a car in India. “We are exploited by every country in the globe, and they do it with tariffs… For example, selling a car is almost impossible in India,” he said.

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But in March, the Indian government announced a new EV policy that significantly reduced import duties to 15% if a carmaker established a factory and invested at least $500 million.

 

Elon Musk’s decision to establish a plant in the United States would be “unfair” to the country, according to President Trump.“It is unfair , but it would be acceptable if he built the factory in India. Trump said during the discussion, “It’s unfair.”
India’s foreign ministry did not immediately respond to a request for comment.

Trump’s Reciprocal Tariff Threat : 
Donald Trump’s pledge to put reciprocal tariffs on any country that levies import taxes on the United States has raised the prospect of a global trade war with both American allies and rivals. Under his proposed reciprocal tariff system, the United States would impose the same levies on foreign imports that those nations apply on American exports.

If I mentioned 25%, they would say. The current statement is “We’ll charge whatever they charge.” I no longer say that. What do you know, too? According to Mr. Trump, “They stop.”

 

The Arrival of Tesla in India :

Insiders predict that Elon Musk’s Tesla could make its Indian market debut as early as April this year. The EV maker has reportedly selected locations for two showrooms in the Indian cities of New Delhi and Mumbai and posted job openings for 13 mid-level posts in India.

But as of right now, India is not where Tesla produces any automobiles.

Although there have been long-standing rumors that Tesla will enter the Indian EV market, the company has encountered a number of obstacles, including expensive taxes, regulations, and localized factory investments. It has previously advocated for reduced import taxes and legislative incentives.