Trump Criticizes Tesla’s India Expansion, Calls It "Unfair" to U.S.

U.S. President Donald Trump has criticized Tesla (NASDAQ: TSLA) for potentially building a factory in India, calling it "unfair" to the U.S. in a Fox News interview aired Tuesday.

Trump highlighted India’s steep import tariffs, which he claims make it "impossible" for Tesla CEO Elon Musk to sell cars there. India currently imposes nearly 100% tariffs on imported EVs, protecting local automakers like Tata Motors (NYSE: TTM). However, in March, the Indian government introduced a policy lowering import taxes to 15% for companies investing at least $500 million and setting up manufacturing in the country.

Despite these changes, Trump believes India’s trade policies remain imbalanced. "Every country takes advantage of us with tariffs… It is impossible to sell a car in India," he stated. He expressed concerns that Musk establishing a factory there would disadvantage the U.S., saying, "If he built the factory in India, that's okay, but that's unfair to us."

Tesla has reportedly chosen locations for two showrooms in Mumbai and New Delhi and posted job openings in India, signaling its intent to enter the world's third-largest auto market. However, the company has yet to manufacture vehicles in the country.

India’s foreign ministry has not commented on Trump's remarks. His push for reciprocal tariffs on countries taxing U.S. imports has previously sparked concerns over global trade tensions.

Musk has repeatedly criticized India's high tariffs, arguing they hinder EV adoption. Tesla's potential entry into India could reshape the country's EV market, but it also raises trade policy concerns between the two nations.