US President Donald Trump has expressed concerns that if Tesla builds a factory in India, it would be “unfair” to the US. This comes after Elon Musk criticized India’s high tariffs on electric vehicles (EVs).
India’s government recently introduced a new EV policy with lower import taxes of 15% for carmakers who invest $500 million and set up a factory. Tesla has already selected locations for two showrooms in New Delhi and Mumbai and posted job ads for mid-level roles in India.
Trump noted that every country takes advantage of the US with tariffs, making it “impossible” to sell cars in countries like India. He agreed to work towards an early trade deal with India but emphasized that if Tesla builds a factory there, it would be unfair to the US.
The Indian government has yet to respond to Trump’s comments. The news comes amid concerns over a potential global trade war triggered by Trump’s plans for reciprocal tariffs on countries taxing US imports.
Source: https://www.reuters.com/world/trump-says-unfair-us-if-musk-builds-factory-india-2025-02-19