Potential Tesla factory in India 'very unfair' to US: Trump
What's the story
US President Donald Trump has voiced his opposition to Elon Musk's possible plan to set up a Tesla factory in India. Speaking to Fox News, Trump said it would be "very unfair" to the US. He reasoned that since India has 100% tariffs on auto imports, selling a car there is virtually impossible for Musk.
Tariff strategy
Reciprocal tariff plans could impact India
Trump's comments came in the context of his recently proposed reciprocal tariff plans. Under these plans, the US government plans to impose equivalent tariffs on imported goods. This strategy could affect nations like India, which has a huge trade deficit with the US. "I want to come back and do the reciprocal tariffs because we have a deficit with almost every country in the world," Trump said during his interview.
Tariff discussion
Trump confronts Modi over India's high tariffs
Trump also revealed that he had spoken to PM Narendra Modi about India's high tariffs. He said, "They charge the highest tariffs in the world. I said, 'Here's what we're going to do: Whatever you charge, I'm charging.' [PM Modi said], 'No, no, I don't like that.' I said, 'No, no, whatever you charge, I'm going to charge." This conversation highlights Trump's commitment to his reciprocal tariff strategy.
Market entry
Tesla's expansion plans in India
Despite the tariff challenges highlighted by Trump, Tesla appears to be moving ahead with its expansion plans in India. The firm has posted job advertisements on LinkedIn for positions based out of Mumbai, Delhi, and Pune. The move comes after Musk met Modi during his US trip and shows that Tesla is all set to enter the Indian market.