US President Donald Trump has called it “very unfair” for Elon Musk’s Tesla to set up a factory in India, especially in light of the former’s efforts to significantly raise tariffs. The comment came during an interview between Trump and Musk, just days after the Tesla CEO met with Prime Minister Narendra Modi during his visit to the US.
Trump reiterated his criticism of India’s high tariffs, a point Musk, who also heads Tesla and the Department of Government Efficiency (DOGE), supported. The interview, recorded earlier, was broadcast on Tuesday evening (Wednesday morning IST).
Trump, once again accusing other countries of exploiting the US through tariffs, cited India’s car import tariffs as an example. Turning to Musk, he said, “It’s practically impossible for him to sell a car, for example, in India. I’m not sure if that’s true, but I think…” Musk quickly jumped in to complete the sentence, adding, “The tariffs are like 100% import duty.”
In India, the import duty on electric vehicles priced above $35,000 is 15%, subject to conditions.
Trump remarked that while Musk could build a factory in India, it would still be “unfair” to the US, calling it “very unfair.” He added, “I told Prime Minister Modi… Here’s what you do. We are going to… be very fair with you.”
Before Trump could finish his thought, the interviewer asked if India’s tariffs were 36%. Trump responded, “Much, much higher.” Musk interjected, saying, “It’s 100% on auto imports…100%.”
Musk agreed with Trump, stating, “It needs to be at a level playing field and fair and square.”
Trump then claimed that they would soon “make a lot of money” and that “a lot of businesses” would flow in.
Tesla, under Musk’s leadership, has already identified locations for showrooms in New Delhi and Mumbai and opened 13 mid-level positions in India. Although the company has had limited presence in India due to high tariffs, India has recently reduced the basic customs duty on high-end cars priced above $40,000 from 110% to 70%.
