Donald Trump Calls Tesla’s India Expansion “Very Unfair” Amid EV Policy Shift

Trump Criticizes Elon Musk’s Plans for Tesla Factory in India

February 20, 2025: 🚗 Tesla’s India Entry Sparks Controversy
🔹 US President Donald Trump has slammed Tesla’s potential plans to set up a factory in India, calling it “very unfair” to America.
🔹 His remarks came during a joint interview with Elon Musk on Fox News’ Sean Hannity show.
🔹 Trump highlighted India’s historically high import duties on electric vehicles, calling them a disadvantage for US manufacturers.

Also Read: Trump Firm on ‘Reciprocal Tariffs’ With India- Says ‘No One Can Argue With Me’

📢 What’s The Issue?

🔸 India’s High EV Tariffs: India imposes import duties of around 100% on electric vehicles, favoring local automakers like Tata Motors.
🔸 New Policy for Foreign Carmakers: In March 2025, India lowered import taxes to 15% for foreign EV makers, provided they invest at least $500 million and build a local factory.
🔸 Tesla’s Expansion Plans: Musk’s company has started hiring staff in India and has reportedly finalized showroom locations in Delhi and Mumbai.

Also Read: Trump Unveils Reciprocal Tariff Policy to Ensure Fair Trade

🔹 Trump’s Response: “Reciprocal Tariffs”

💬 “It is impossible to sell a car in India… Every country takes advantage of us with tariffs.” – Donald Trump

🔹 Trump reiterated his “Reciprocal Tariff” policy, where the US will impose equal tariffs on nations that tax American imports.
🔹 He claimed that Tesla setting up a factory in India would give an unfair advantage to India over the US auto industry.

Also Read: China Strikes Back: 15% Tariffs on US Coal and Gas Amid Reignited Trade War

⚡ What This Means for Tesla in India

🔹 Tesla does not currently manufacture cars in India, but its entry is expected as early as April 2025.
🔹 The EV giant has faced regulatory hurdles and high taxes, but India’s new policy may finally pave the way for local manufacturing.
🔹 If Tesla invests $500 million, it will be able to import cars at lower taxes and eventually build a production hub in India.

🌍 Trade War Risks: What’s Next?

⚠️ Trump’s tariff plans could lead to a global trade war, impacting not just India-US trade, but also Tesla’s global operations.
⚠️ The Indian government has not yet responded to Trump’s remarks.

📌 Would Tesla’s India expansion benefit both markets, or will tariffs become a roadblock?