Trump Slams Musk’s Tesla Factory Plans in India as ‘Unfair’

Former US President Donald Trump has called it “very unfair” for Elon Musk’s Tesla to establish a factory in India, especially considering his efforts to significantly raise tariffs.

The remark, made during an interview with Fox News host Sean Hannity, came shortly after Tesla CEO Elon Musk met with Prime Minister Narendra Modi during his visit to the US.

Trump reiterated his claims about India’s high tariffs, a point that was reinforced by Elon Musk, Tesla’s owner and the head of Department of Government Efficiency (DOGE). The interview was recorded earlier but broadcast on Tuesday night eastern time (Wednesday morning IST).

Reiterating his claim that “every country” took advantage of the US with tariffs, Trump began by citing the example of tariffs on cars in India.

Addressing Musk, Trump remarked, “It’s nearly impossible for him to sell a car, for instance, in India. I’m not sure if that’s true, but I believe…” Musk quickly stepped in to finish Trump’s statement, adding, “The tariffs are like a 100% import duty.”

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Elon Musk’s Tesla has already identified locations in india

The import duty on electric vehicles costing at least $35,000 in India is 15%, subject to certain conditions.

Trump stated that while it was “okay” for Musk to set up a factory in India, it was also “unfair” to the US. He emphasized, “That’s unfair to us. It’s very unfair.”

Trump continued, saying, “I told Prime Minister Modi… Here’s what you do. We are going to… be very fair with you.”

Before Trump could finish his statement, the interviewer asked if the tariffs charged by India were 36%. Trump replied, “Much much higher.” Musk added, “It’s 100% on auto imports… 100%.”

Trump then asserted that they would now “make a lot of money” and that “many businesses” would begin pouring in.

Elon Musk’s Tesla has already identified locations for showrooms in New Delhi and Mumbai and has also opened 13 mid-level positions in India, according to Reuters.

Although Tesla has had a limited presence in India due to high tariffs, the country has recently lowered the basic customs duty on high-end cars priced over $40,000 from 110% to 70%.

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