“Very Unfair”: Donald Trump Slams Elon Musk’s Tesla Factory Plans in India Amid Tariff Debate
The buzz around Tesla’s potential entry into India just got louder—and a little spicier! In a recent Fox News interview with Sean Hannity, US President Donald Trump didn’t hold back, calling it “very unfair” for Elon Musk to set up a Tesla factory in India. The comment came during a heated chat about tariffs, with Trump and Musk teaming up to criticize India’s high import duties. Let’s break it down in simple terms and see what this means for Tesla, India, and the US.
Trump has long been vocal about trade imbalances, and India’s tariffs were a big target in the interview, which aired on Tuesday night Eastern Time (Wednesday morning IST, February 19-20, 2025). He claimed that “every country” takes advantage of the US with high tariffs, pointing to India as a prime example. “It’s impossible for him to sell a car in India,” Trump said, turning to Musk, who jumped in to agree: “The tariffs are like 100% import duty.” Trump argued that if Musk built a factory in India to dodge these tariffs, it’d be “okay” but “unfair” to American businesses.
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Elon Musk, Tesla’s CEO and the head of the Department of Government Efficiency (DOGE), didn’t hesitate to back Trump up. “It’s 100% on auto imports,” Musk confirmed, stressing that India’s steep duties make it tough for Tesla to compete. He added, “It needs to be a level playing field and fair and square.” The duo’s frustration stems from India’s import policies, which slap hefty taxes on foreign electric vehicles (EVs)—though recent changes have lowered duties on high-end cars over $40,000 from 110% to 70%. Still, Musk sees a factory as a workaround, and Trump isn’t thrilled about it.
Tesla’s been eyeing India for a while, and things are heating up. After Elon Musk met Prime Minister Narendra Modi during Modi’s US visit in 2023, Tesla started making moves. The company’s already scouting showroom spots in New Delhi and Mumbai and has posted 13 job openings in India, according to Reuters. India’s huge market—over 1.4 billion people—offers big potential for Tesla, especially with EV adoption on the rise. But those high tariffs? They’ve kept Tesla at bay until now.
Trump hinted at pushing back against India’s tariffs, saying he told PM Modi, “Here’s what you do. We are going to be very fair with you.” He didn’t finish the thought before Hannity jumped in, asking if India’s tariffs were 36%. “Much, much higher,” Trump shot back, with Musk doubling down on the 100% figure. Trump’s big idea? Reciprocal tariffs—charging India the same rates they charge the US. He claimed this would “make a lot of money” and bring businesses flocking back to America.
This tariff tussle isn’t just talk—it could shape Tesla’s future in India and US-India trade ties. For Musk, a factory in India could mean cheaper Tesla models (think Rs 25-30 lakh) and a foothold in Asia’s third-largest auto market. For Trump, it’s about keeping jobs and manufacturing in the US. And for India? It’s balancing local automakers like Tata Motors with the allure of global giants like Tesla. As of February 20, 2025, Tesla’s hiring in India signals they’re serious—but Trump’s “very unfair” warning adds a twist to the tale.
