Tesla in India: Trump says unfair to U.S. if Elon Musk builds factory in India

Trump criticizes India's high car tariffs, calls it "impossible" for Tesla to sell cars, raising concerns over trade relations.

U.S. President Donald Trump has said that if Tesla were to build a factory in India to circumvent that country's tariffs, it would be "unfair" to the U.S., in an interview with Fox News which aired on Tuesday (February 18, 2025).

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Mr. Trump called out India's high duty on cars during Prime Minister Narendra Modi's visit to the U.S. last week but agreed to work towards an early trade deal and resolve their standoff over tariffs.

Tesla's CEO Elon Musk has long criticised India for having import tariffs of around 100% on EVs which protect local automakers such as Tata Motors in the world's third largest auto market, where EV adoption is still at a nascent stage.

Mr. Trump said it is "impossible" for Mr. Musk to sell a car in the South Asian nation.

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"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," he said.