 "President Donald Trump speaks with reporters as Elon Musk listens in the Oval Office at the White House, in Washington. AP")
US President Donald Trump said it would be “unfair” to the US if Elon Musk’s Tesla built a factory in India to avoid import tariffs in the country.
“Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” Trump said.
The statement from Trump came in a joint interview with Elon Musk on Fox News, which aired on Tuesday. Trump has previously said that it is “impossible” for Musk to sell cars in India.
“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.
Modi’s visit to US
During Prime Minister Narendra Modi’s US visit last week, Trump criticised India’s high car tariffs. However, both leaders agreed to work on a trade deal to resolve their tariff dispute during the bilateral meeting.
Musk on Import tariffs in India
Tesla CEO Elon Musk has often criticised India’s high import tariffs. India imposes high tariffs to protect local carmakers like Tata Motors and Mahindra & Mahindra. The EV market in India is in a growing stage and holds a lot of potential.
In March last year, the Indian government introduced a new EV policy, cutting import taxes to 15 per cent for carmakers that invest at least $500 million and build a factory.
Impact Shorts
More ShortsTesla’s entry in India
There are speculations that Tesla is preparing to enter the Indian market. The EV manufacturer is reportedly planning to open showrooms in New Delhi and Mumbai. The company has begun hiring for various positions, including customer-facing and back-end roles, signalling a significant step towards establishing its presence in India.