'Musk's Tesla factory in India would be very unfair,' says Trump

In a recent interview on "The Sean Hannity Show," President Donald Trump expressed concerns over Tesla CEO Elon Musk's potential plans to establish a manufacturing facility in India, labeling such a move as "very unfair" to the United States. Trump highlighted the significant trade imbalances resulting from India's high import tariffs on American goods, particularly automobiles.

During the discussion, Trump emphasized the challenges American manufacturers face in the Indian market due to these tariffs, stating, "It's impossible for him to sell a car, practically, in, as an example, India." Musk concurred, noting that India imposes a 100% import duty on automobiles. Trump further elaborated on his stance, mentioning a conversation with Indian Prime Minister Narendra Modi:

"I told Prime Minister Modi yesterday... They charge the highest tariffs in the world. I said, 'Here's what we're going to do: Whatever you charge, I'm charging.' [PM Modi said], 'No, no, I don't like that.' I said, 'No, no, whatever you charge, I'm going to charge.' I'm doing that with every country."

These remarks come on the heels of Musk's meeting with Prime Minister Modi during the latter's visit to the U.S., where they discussed potential collaborations in technology and innovation. Subsequently, Tesla has intensified its efforts to enter the Indian market, posting job openings in cities like Mumbai, Delhi, and Pune, and scouting for showroom locations. However, the high import duties remain a significant hurdle for the company's expansion plans in India.

Trump's comments underscore the broader debate on trade policies and the challenges U.S. companies face in markets with high tariff barriers. As Tesla navigates its potential entry into India, the interplay between trade policies and business strategies will be pivotal in shaping the company's approach.