Donald Trump Calls Tesla’s India Factory Plans “Very Unfair” Amid Tariff Debate
Summary: Former US President Donald Trump criticizes Tesla’s potential factory in India, calling it “very unfair” to the US amid ongoing trade tensions over tariffs and EV policies.
Days after Tesla began hiring staff in India, signaling its long-anticipated entry into the market, former US President Donald Trump criticized the potential move, calling it “very unfair” to the United States.
During a joint interview with Tesla CEO Elon Musk on Fox News’ Sean Hannity, Trump expressed concerns over India’s high tariffs on car imports, stating that it is “practically impossible” for American automakers to sell vehicles in the Indian market.
India’s New EV Policy and Tesla’s Plans
In March, the Indian government unveiled a new electric vehicle (EV) policy, drastically reducing import duties to 15%—down from nearly 100%—for carmakers willing to invest at least $500 million and establish local manufacturing facilities. This move opened the door for Tesla, which has long lobbied for reduced import taxes before committing to production in India.
Sources suggest Tesla could enter the Indian market as early as April, with showroom locations reportedly secured in Mumbai and New Delhi. The EV giant has also posted job listings for 13 mid-level positions in India, further hinting at an imminent expansion. However, Tesla has yet to manufacture any vehicles in the country.
Trump’s Stance on Trade and Tariffs
Trump has been vocal about trade imbalances, accusing countries like India of leveraging high tariffs to protect domestic industries. He recalled raising the issue with Indian Prime Minister Narendra Modi during his recent visit to the US.
“Every country in the world takes advantage of us with tariffs. It’s impossible to sell a car in India,” Trump said.
While acknowledging Musk’s potential investment, Trump argued that building a Tesla factory in India would be “very unfair” to American interests.
“Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” he added.
Trump’s Reciprocal Tariff Plan and Global Trade Impact
Trump has proposed a reciprocal tariff policy, meaning the US would impose the same tariffs on imports as other countries place on American goods.
“If I said 25%, they’d say, ‘Oh, that’s terrible.’ I don’t say that anymore… because I say, ‘Whatever they charge, we’ll charge.’ And you know what? They stop,” Trump stated in the interview, reinforcing his aggressive trade stance.
The Road Ahead for Tesla in India
Despite Trump’s criticisms, Tesla’s India entry aligns with the country’s growing EV ambitions. India, the world’s third-largest auto market, is still in the early stages of EV adoption, with domestic players like Tata Motors leading the sector.
Tesla’s potential investment could accelerate the country’s EV transition while also benefiting from reduced tariffs. However, trade tensions and Trump’s proposed reciprocal tariffs may add complexities to the automaker’s global expansion strategy.
As Tesla moves closer to an India launch, the debate over trade fairness and foreign investments continues to heat up, with both economic and political implications on the horizon.
Last Updated on: Thursday, February 20, 2025 5:20 am by Digital Herald Team | Published by: Digital Herald Team on Thursday, February 20, 2025 5:20 am | News Categories: News
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