With Elon Musk by his side, Donald Trump decries Tesla’s India move as ‘very unfair’; Here's why

US President Donald Trump has termed Tesla CEO Elon Musk’s plans to set up a factory in India as “very unfair” to the United States, arguing that the move is a result of India’s high import tariffs on automobiles.

“Every country in the world takes advantage of us, and they do it with tariffs. It is impossible to sell a car, practically, in, as an example, India,” Trump said in a recent interview with Fox News’ Sean Hannity.

“If he (Musk) built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair,” the US president added, reiterating his stance on trade tariffs.

Musk, who heads the Department of Government Efficiency, was also present during the interview.

Trump’s comments come amid reports of Tesla ramping up hiring in India for roles such as business operations analyst, customer support specialist, and service technicians in Mumbai and Delhi. The company has listed 13 job openings on LinkedIn, indicating a potential market entry.

Tesla’s engagement with India has been sporadic, largely due to concerns over high import duties. However, in a recent policy shift, India reduced the basic customs duty on high-end cars priced above USD 40,000 from 110% to 70%, a move seen as paving the way for Tesla’s expansion into the country.

India’s electric vehicle (EV) market presents a significant opportunity for Tesla, which recently posted its first annual decline in EV sales in over a decade. The latest hiring drive follows Musk’s meeting with Prime Minister Narendra Modi in Washington last week, where they discussed strengthening cooperation in innovation, space exploration, artificial intelligence, and sustainable development.

Following the meeting, Modi posted on X: “Had a very good meeting with @elonmusk in Washington DC. We discussed various issues, including those he is passionate about such as space, mobility, technology, and innovation.”

During the interview, Trump claimed that he had discussed the issue of tariffs with Modi, asserting that India imposes exorbitant duties on car imports.

When asked whether the tariffs were around 36%, Trump dismissed the figure, stating, “Much, much higher.”

Musk then interjected, saying India imposes a 100% tariff on auto imports.

“I told Prime Minister Modi… Here’s what you do. We are going to… be very fair with you,” Trump said, adding that he proposed reciprocal tariffs. “Here’s what we’re going to do: reciprocal. Whatever you charge, I’m charging.”

According to Trump, Modi responded unfavourably to the idea.

“He goes, ‘No, no, I don’t like that.’ ‘No, no, whatever you charge, I’m going to charge.’ I’m doing that with every country,” Trump recounted.

Musk responded to Trump’s suggestion by saying, “It seems fair.”