Days following Tesla’s beginning of hiring in India—possibly indicating a market entrance—former US President Donald Trump has questioned the proposed construction of a plant in India by the electric vehicle (EV) behemoth. On the Sean Hannity show on Fox News, Trump slammed India’s tariff policy and called Tesla’s potential relocation “very unfair” to the U.S. in an interview with Tesla CEO Elon Musk.
Donald Trump Lashes Out Against India’s High Duties on American Automobiles
Trump, during the interview, recollected his talk with Indian Prime Minister Narendra Modi on US automobile import duties. Emphasizing how India’s nearly 100% import duty on EVs makes it hard for American car manufacturers to compete in the Indian market, he repeated his long-standing trade imbalance complaint.
Every country uses us this way with tariffs; Practically, for instance, in India, one cannot sell a vehicle,” Trump remarked.
Though Tesla is growing interested in India, Trump maintained that a factory in India by Musk would not be in line with American interests. “If he constructed the factory in India now, that’s fine, but that’s unjust to us. It’s rather unfair,” he noted.
The New Electric Vehicle Policy of India and Tesla’s Entry Strategy
For car makers spending at least $500 million in establishing a production plant, India lately changed its EV policy to lower import taxes to 15%—a significant reduction from the previous 100% tax. The move is intended to entice international EV makers—who might include Tesla—to produce domestically rather than depend on imports.
Before deciding on a factory, Tesla has long sought to lower import fees and assess demand. By March, sources had announced that having already picked sites for showrooms in New Delhi and Mumbai, as well as listed job openings for 13 mid-level roles in India; Tesla would enter the Indian market by April 2025.
Trump’s Threat of Trade Alphabets
Trump’s comments support his general attitude toward commercial policies. His suggested reverse tariff scheme would apply on imports the same taxes other nations do on American products, therefore perhaps raising worldwide commercial pressures.
“If I said 25 percent, they’d say, ‘Oh, that’s awful.’ I no longer say… Trump told Fox News, stressing his tariff strategy, “Because I say, ‘Whatever they charge, we’ll charge.&’ And you know what? They stop.
Problems with Tesla’s Indian Entry
Although Tesla has long sought India, policy rules, steep taxes, and localization needs have hampered the company. Before deciding on local manufacturing, Tesla had earlier pushed for incentives and tariff cuts.
Though the Indian EV industry is still beginning, it has great promise, especially given that domestic companies such as Tata Motors are spearheading it. Tesla could change the industry by opening it up, therefore offering more choices for Indian buyers and increasing competition in the rapidly expanding electric vehicle market.
India Still to Offer Trump’s Remarks
India’s Ministry of External Affairs has not yet reacted to remarks made by Trump on Tesla’s Indian project. Given growing trade tensions and Tesla’s possible entrance on the scene, the next few months will be critical in defining the direction of US-India automotive trade relations.
