President Donald Trump has said that it would be unfair to the US if Tesla were to build a factory in India to circumvent the country’s tariffs.

Trump called out India’s high duty on cars during Prime Minister Narendra Modi’s visit to the US 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 percent on electric vehicles, which protect local automakers such as Tata Motors in the world’s third largest auto market, where electric vehicles adoption is still at a nascent stage.


According to Trump, it is impossible for Musk to sell a car in the South Asian nation.

“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.

India’s government in March unveiled a new electric vehicle policy, lowering import taxes substantially to 15 percent if a carmaker invests at least $500 million and sets up a factory.

It was gathered that Tesla has selected locations for two showrooms in the Indian cities of New Delhi and Mumbai, and posted job advert for 13 mid-level roles in India.

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