Donald Trump not happy with Tesla factory in India? Calls it 'very unfair'

Former U.S. President Donald Trump has criticized Tesla’s plans to set up a factory in India, calling it "very unfair" to America. Speaking during a Fox News interview alongside Tesla CEO Elon Musk, Trump reiterated his stance on global trade tariffs, arguing that the U.S. faces disproportionate trade policies.

His remarks come days after Tesla began hiring staff in India, signaling its entry into the world’s third-largest auto market. The Indian government recently lowered EV import taxes to 15%—provided a company invests at least $500 million and establishes a manufacturing facility. Trump argued that such policies put American businesses at a disadvantage.

"Every country in the world takes advantage of us with tariffs. It is practically impossible to sell a car in India," Trump said, referencing India’s historically high import duties on EVs. He had earlier raised concerns about India’s trade policies during Prime Minister Narendra Modi’s visit to the U.S..

Trump’s reciprocal tariff policy proposes imposing equal tariffs on imports from other nations, potentially sparking a global trade war. "If they charge 25%, we’ll charge 25% back. And you know what? They stop," he told Fox News, justifying his aggressive stance on international trade.

Meanwhile, Tesla is preparing to launch its operations in India as early as April 2025. Reports suggest the company has finalized locations for showrooms in New Delhi and Mumbai and is actively recruiting for 13 mid-level roles. However, Tesla does not yet manufacture vehicles in India and has faced hurdles related to policy regulations and high taxation in the past.

The Indian government has not yet responded to Trump’s comments. However, analysts suggest that Tesla’s entry into India aligns with New Delhi’s push for EV adoption, making the country a crucial growth market for Musk’s company.