New Delhi: Billionaire entrepreneur Elon Musk is advancing his global expansion plans, with Tesla poised to enter the Indian market. However, former U.S. President Donald Trump has expressed significant concerns about Musk’s move and has raised objections to the plan.
In an interview with Fox News on Tuesday, Trump argued that if Tesla built a factory in India to avoid the country’s high tariffs, it would be “unfair” to the United States. Trump has been a vocal critic of the high import duties imposed by India, which he believes disadvantage American businesses.
“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,” Trump said.
India imposes nearly 100% import duty on electric vehicles (EVs), making it prohibitively expensive for foreign automakers to sell their cars in the country. This policy has protected local companies like Tata Motors. However, in a recent development, India introduced a new EV policy that reduces import taxes to 15% if a carmaker invests at least $500 million and sets up a factory in the country.
According to sources, Tesla has already selected locations for two showrooms in New Delhi and Mumbai and has posted job listings for 13 positions in India. Musk has previously criticized India’s high tariffs and confirmed, during the interview, that the import duties are indeed steep.
Trump, who has been advocating for higher tariffs on imports to the U.S., insisted that a Tesla factory in India would be disadvantageous to the American economy. “If he (Musk) built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” Trump stated.
During a recent meeting with Indian Prime Minister Narendra Modi at the White House, Trump discussed the issue of tariffs and emphasized the need for reciprocal duties. He stated, “Here’s what we are going to do: reciprocal. Whatever you charge, I’m charging,” to which Musk responded, “It seems fair.” India’s foreign ministry has not yet commented on the matter.
(With inputs from various agencies).
