In March, the Indian government announced its new EV policy, which significantly reduced import duties to 15% for automakers that invest at least $500 million and establish a facility.
Washington, DC: US President Donald Trump has stated that any possible plans by the electric vehicle manufacturer to establish a factory in India to get around that nation’s tariffs would be “very unfair,” only days after the company began hiring employees there, indicating its possible entry into the market. The comments were delivered by the US President and Tesla CEO Elon Musk in a joint interview with Sean Hannity of Fox News.
During Prime Minister Narendra Modi’s visit to the United States last week, President Trump noted that he criticized India’s high vehicle tariffs but also committed to working toward an early trade agreement and ending their tariff impasse.
PM Modi visited Tesla CEO Elon Musk on his trip to the US. Musk has long criticized India for imposing import taxes of almost 100 percent on EVs, which shields domestic companies like Tata Motors in the world’s third-largest auto market, where EV adoption is still in its infancy.
It is “impossible” for Elon Musk to sell a vehicle in India, according to Mr. Trump. “Every nation in the world exploits us, and they use tariffs to do it… In India, for instance, it is nearly hard to sell a car,” he stated.
But in March, the Indian government announced a new EV policy that significantly reduced import duties to 15% provided a carmaker established a facility and invested at least $500 million.
Elon Musk’s decision to establish a plant in the United States would be “unfair” to the country, according to President Trump. “It is unjust to us, but it is acceptable if he constructed the plant in India. In the interview, Trump stated, “It’s unfair.”
A request for comment was not immediately answered by India’s foreign ministry.
Trump’s Threat of Reciprocal Tariffs
The prospect of a worldwide trade war with American allies and adversaries has increased due to Donald Trump’s threats to impose reciprocal tariffs on any nation that imposes import levies on the US. Under his suggested reciprocal tariff system, the US would levy the same amount of taxes on foreign imports as those countries do on American goods.
“They would remark, ‘Oh, that’s awful,’ if I mentioned 25%. I now say, ‘Whatever they charge, we’ll charge.’ so I don’t say that anymore. And what do you know? When discussing his tariff proposals on Tuesday, Mr. Trump told Fox News, “They stop.”
Tesla’s Entry in India
According to insiders, Elon Musk’s Tesla is anticipated to debut in the Indian market as early as April of this year. According to reports, the EV manufacturer has listed job openings for 13 mid-level positions in India and chosen sites for two showrooms in the Indian cities of New Delhi and Mumbai.
But as of right now, India is not where Tesla produces any automobiles.
Although there have been long-standing rumours that Tesla will enter the Indian EV market, the company has encountered several obstacles, including expensive taxes, regulations, and localized factory investments. It has previously advocated for reduced import taxes and legislative incentives.
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