US President Donald Trump has reacted to Elon Musk's Tesla's potential entry into the Indian market, calling it "very unfair." Trump said any plan to build a factory in India to circumvent the tariffs would be unfair. According to some media reports, his comments have come in the backdrop of Tesla initiating staff hiring in India.
Trump recalls India's high duty on cars
In a joint interview with Tesla CEO Elon Musk for Fox News' Sean Hannity, Trump also recalled that India's high duty on cars was discussed in meeting with PM Modi during his US visit last week. However, he added that both countries agreed to work towards an early trade deal and collaborate on resolving the standoff over tariffs.
Notably, PM Modi, during his visit to the US, also met Tesla CEO Elon Musk, who has also remained a critic of India's approximately 100 per cent tariffs on electronic vehicles (EV). PM Modi discussed opportunities in space, mobility, technology, and energy and exchanged notes on efforts at good governance in India and the US with the SpaceX CEO.
Moreover, PM Modi received a warm welcome from Trump before settling down for the crucial talks. PM Modi-Trump meeting came hours after the American President announced a new reciprocal tariff policy for all the trading partners of the US. While announcing the new tariff policy, the President also spoke about how India is "right at the top of the pack" when it comes to tariffs.
India to adopt a concilliatory approach with US
India has already indicated its readiness to adopt a more conciliatory approach on the sensitive issue unlike its hardline approach during Trump's first term.
People closely tracking India-US ties said there is a possibility of both sides exploring the option of looking at a trade pact to avoid high tariffs and expand the overall trade basket. The bilateral trade between India and the US was around USD 130 billion last year.
(With inputs from AP)
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