Trump: If Tesla Builds a Factory in India, It’s Unfair to the U.S.

U.S. President Donald Trump stated that if Tesla decides to build a factory in India to circumvent the country’s tariffs, the move would be "unfair" to the United States.

Trump made this statement during an interview with Fox News, which aired on Tuesday (February 18, 2025).

Trump Criticizes India’s High Tariffs

According to Reuters, Trump criticized India’s steep import duties on cars during Indian Prime Minister Narendra Modi’s visit to the U.S. last week. However, he agreed to work toward a preliminary trade deal to resolve their tariff disputes.

Tesla CEO Elon Musk has long criticized India for imposing nearly 100% import tariffs on electric vehicles (EVs) to protect local automakers like Tata Motors in the world’s third-largest car market.

Trump argued that these high tariffs make it almost impossible for Tesla to sell cars in India.

"Every country in the world takes advantage of us with tariffs… It’s practically impossible to sell cars in India," Trump said.

India Eases Tax Rules to Attract Investors

In March 2025, the Indian government introduced a new policy that significantly lowers import taxes on EVs to 15%, provided that automakers invest at least US$500 million and establish a manufacturing plant in India.

A Reuters report on Tuesday revealed that Tesla has selected locations for two new showrooms in New Delhi and Mumbai and has advertised job openings for 13 mid-level positions. Currently, Tesla does not manufacture any vehicles in India.

Reacting to this, Trump reiterated that while Tesla’s decision to build a factory in India would benefit the country, it would be detrimental to the U.S.

"If he (Musk) builds a factory in India, that’s fine, but it’s not fair to us. It’s very unfair," Trump emphasized during the interview.

As of now, India’s Ministry of External Affairs has not responded to Trump’s comments.

Meanwhile, Trump’s plan to impose reciprocal tariffs on countries that heavily tax U.S. imports has escalated the risk of a global trade war, even with America’s own allies.

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