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.