US President Donald Trump expressed concerns about Elon Musk's plans to set up a Tesla manufacturing facility in India, calling it "unfair" to the US. Trump's concerns stem from existing trade disparities and India's high import duties on American-made vehicles.

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The comment, made during Trump and Musk’s interview with Fox News presenter Sean Hannity, comes days after the Tesla CEO met with Prime Minister Narendra Modi on the latter’s visit to the US.

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India a "tariff king"

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Donald Trump has once again claimed that India imposes high tariffs, a statement that was echoed by Elon Musk, the CEO of Tesla. This isn't the first time Trump has made this assertion, having previously described India as a "tariff king" that charges "tremendously high" tariffs on US products. 

The interview was recorded earlier but broadcast on Wednesday (Feb 19).

Reiterating his claim that “every country” took advantage of the US with tariffs, Trump began by citing the example of tariffs on cars in India.

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Trump said It’s impossible for Musk to sell cars, practically in India. "I don’t know if that’s true or not, but I think…” said Trump, and Musk completed his sentence by mentioning, “The tariffs are like 100% import duty.” This highlights the significant trade barriers that Tesla faces in the Indian market.

“Unfair” to the US

The import duty on electric vehicles that cost at least $35,000 is 15 per cent in India, subject to conditions.

Trump added that if Musk wanted to build a factory in India, that was “okay” but also “unfair” to the US. “That’s unfair to us. It’s very unfair,” he said.

Trump added, “I told Prime Minister [Narendra] Modi… Here’s what you do. We are going to… be very fair with you.”

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Trump was cut off mid-sentence when asked if India's tariffs were 36 per cent, to which he responded that they were "much, much higher."

Musk chimed in, revealing that the tariffs on auto imports were actually a staggering 100 per cent.

Musk has also agreed with Trump and said “It needs to be at a level playing field and fair and square.”

Trump then claimed that the US would now “make a lot of money” and “a lot of businesses” would come pouring in.

Tesla, led by Musk, has taken significant steps towards establishing a presence in India, having already identified locations for showrooms in New Delhi and Mumbai, and posted job openings for 13 mid-level positions in the country, Reuters reported.

(With inputs from agencies)