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Trump says unfair to US if Musk builds factory in India
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Trump says unfair to US if Musk builds factory in India
Feb 19, 2025 8:15 AM

NEW DELHI, Feb 19 (Reuters) - U.S. President Donald

Trump has said that if Tesla were to build a factory in

India to circumvent that country's tariffs, it would be "unfair"

to the U.S., in an interview with Fox News which aired on

Tuesday.

Trump called out India's high duty on cars during Prime

Minister Narendra Modi's visit to the U.S. last week, but agreed

to work towards an early trade deal and resolve their standoff

over tariffs.

Tesla's CEO Elon Musk has long criticised India for having

import tariffs of around 100% on EVs which protect local

automakers such as Tata Motors in the world's third largest auto

market, where EV adoption is still at a nascent stage.

Trump said it is "impossible" for Musk to sell a car in the

South Asian nation.

"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," he said.

India's government in March unveiled a new EV policy

lowering import taxes substantially to 15% if a carmaker invests

at least $500 million and sets up a factory.

Reuters reported on Tuesday that Tesla has selected

locations for two showrooms in the Indian cities of New Delhi

and Mumbai, and posted job ads for 13 mid-level roles in India.

It does not currently manufacture any vehicles in India.

Trump said it would be "unfair" to the U.S. if Musk did

decide to build a factory there.

"Now, if he built the factory in India, that's okay, but

that's unfair to us. It's very unfair," Trump said in the

interview.

India's foreign ministry did not immediately respond to a

request for comment.

Trump's plans for reciprocal tariffs on every country that

taxes U.S. imports have raised the risk of a global trade war

with American friends and foes.

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