ALSO READ: Tesla’s sudden Indian jobs plan comes amid Trump’s tariff threats
“The tariffs are like 100% import duty,” Musk confirmed. Trump agreed, calling the tariffs “so high.”
According to a White House fact sheet, India imposes a 100% tariff on US motorcycles, while the U.S. tariff on Indian motorcycles is just 2.4%.
Trump added, “Now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair.”ALSO READ: Tesla begins job hunting in India after Modi-Musk meet, announces hiring plansThe relationship between Trump and Musk might be the most “consequential alliance” in the American government, commented The New York Times. “It’s a remarkable partnership between two mercurial men who once publicly disparaged each other — and who really got to know each other only about six months ago. And it’s one that could shape the future of the country,” the commentary added.
Trump in his interview with Hannity, recalled when Musk rang him and said, “You know they’re trying to drive us apart.”
ALSO READ: Before Elon Musk enters Indian space, he plans to hit the road route
Here is the transcript from the interview available on the official website of the White House:
THE PRESIDENT:And — but every country in the world takes advantage of us, and they do it with tariffs. They makes — make it — it’s impossible for him to sell a car, practically, in, as an example, India. I don’t know if that’s true or not, but I think —
MR. MUSK: The tariffs are like 100 percent import duty.
THE PRESIDENT: The tariffs are so high —
MR. MUSK: Yeah.
THE PRESIDENT: — they don’t want to — now, if he built the factory in India, that’s okay, but that’s unfair to us. It’s very unfair.
And I said, “You know what we do?” I told Prime Minister Modi yesterday — he was here. I said, “Here’s what you do. We’re going to do — be very fair with you.” They charge the highest tariffs in the world, just about.
Q 36 percent?
THE PRESIDENT: Oh, much — much higher.
MR. MUSK: It’s 100 percent on — auto imports are 100 percent.
THE PRESIDENT: Yeah, that’s peanuts. So, much higher. And — and others too. I said, “Here’s what we’re going to do: reciprocal. Whatever you charge, I’m charging.” He goes, “No, no, I don’t like that.” “No, no, whatever you charge, I’m going to charge.” I’m doing that with every country.
This statement comes when Trump pushes for aggressive tariff policies.
Trump’s entry in India
Within this short span and following Modi’s visit to the US, Tesla has made a significant move by beginning its hiring process in India. This may look like Tesla is renewing its intention to enter India.
Tesla, which has long maintained minimal presence in India, is now actively recruiting for 13 positions, including customer-facing and back-end roles. The development has reignited speculation about Tesla’s long-awaited entry into India, after years of negotiations that saw multiple roadblocks over tax waivers and local manufacturing requirements.
For years, Musk has spoken against India’s high import duties, calling them a major barrier to Tesla’s expansion in the country.
Tesla’s move amid rising trade tensions
With Tesla’s sudden move to start hiring in India, the possibility of significant investments flowing into the country has emerged – but is there more to this than meets the eye?
It remains unclear whether Tesla will secure the tax reductions it has long sought. We also don’t know yet about Tesla’s manufacturing or assembling plans in India. However, with mounting tariff threats and Musk’s close ties to Trump, the timing of Tesla’s India hiring plans has raised many questions.
Elon Musk, now a key ally of Trump, holds considerable sway in the administration. With Trump securing another term in office, US trade policies are likely to be more aggressive. Tesla had previously stepped back from its India plans, but the changing political landscape may pressure India into offering more favourable terms.
For years, Tesla has sought lower import duties before committing to major investments in India. Previously, New Delhi had reduced import taxes on electric vehicles for companies that invest at least 41.5 billion rupees ($500 million) and establish local production within three years. However, India’s rapidly evolving EV market presents increasing competition for Tesla.
When Narendra Modi met Trump last week, the Indian prime minister arrived with trade concessions on Harley-Davidson bikes. But the US President responded with the looming threat of tariffs.
India’s growing EV market
India’s electric vehicle sector is witnessing rapid growth, with domestic manufacturers ramping up production. Companies such as Tata Motors, Mahindra & Mahindra, and Maruti Suzuki are aggressively expanding their EV offerings. Maruti Suzuki, which had been slow to enter the EV market, unveiled the e-Vitara at an auto show in February. Other players, such as Vietnam’s VinFast, also showcased new models.
Tesla’s hiring announcement thus comes at a time when local manufacturers are firmly establishing themselves. A Tesla entry could disrupt the market, putting pressure on domestic players who have made significant investments in the sector.
Tata Motors, which has dominated the market with models like the Nexon EV and Tigor EV, faces direct competition. Leveraging its strong manufacturing base and R&D capabilities, Tata Motors has secured a significant share of India’s EV sector. Mahindra & Mahindra, known for its durable utility vehicles, has also expanded into the EV space with models such as the eVerito and e2oPlus.
MG Motor India, another key player, has made significant inroads with the MG ZS EV, catering to technology-driven consumers. These domestic manufacturers have strongly opposed any reduction in import duties for Tesla, arguing that it would disadvantage local businesses after years of investment.
