Days after Tesla began recruiting employees in India, signaling its possible market entry, US President Donald Trump expressed disapproval over the electric vehicle manufacturer's reported plans to establish a factory in the country. Trump described the move as “very unfair,” claiming it would allow Tesla to bypass India's steep tariffs on imported vehicles.

Trump made these comments during a joint interview with Tesla CEO Elon Musk on Fox News, hosted by Sean Hannity. He recalled raising concerns about India’s high car import duties during Prime Minister Narendra Modi’s recent visit to the United States. Although both leaders had agreed to work towards a trade resolution, Trump maintained that India’s tariffs were excessively protectionist.

“It’s practically impossible to sell a car in India because of their tariffs,” Trump asserted. “Every country takes advantage of us through tariffs.”

India imposes import taxes of up to 100% on electric vehicles, which has long been a point of contention for Musk. The steep duties are meant to protect domestic automakers like Tata Motors in India, which is the world’s third-largest auto market but still in the early stages of EV adoption.

However, India introduced a new electric vehicle policy in March, reducing import tariffs to 15% for manufacturers that commit to investing at least $500 million and setting up production plants in the country.

Trump stated that while Musk building a factory in India might align with local interests, it would ultimately disadvantage the United States. “If he builds a factory in India, that’s fine for them, but it’s unfair to us,” Trump remarked.

The Indian Ministry of External Affairs has not issued a comment in response to Trump’s statements.

Reciprocal Tariff Proposal

Trump reiterated his broader stance on trade, emphasizing a policy of reciprocal tariffs. He proposed that the US should match the import tariffs levied by other countries on American goods. “If they charge 25%, we will charge the same,” Trump said. He argued that this approach would dissuade other nations from imposing heavy duties on US exports, reducing the risk of trade imbalances.

Tesla’s Indian Expansion Plans

Tesla is reportedly preparing to enter the Indian market by April. The company has selected sites for showrooms in Mumbai and New Delhi and advertised vacancies for 13 mid-level positions. Although Tesla does not currently manufacture vehicles in India, the company has been in discussions with Indian authorities for years regarding investment incentives and tax reductions.

Musk has previously voiced concerns over India’s regulatory environment and tariffs. The new EV policy is seen as a step to address such hurdles, potentially paving the way for Tesla’s long-awaited Indian debut.