Donald Trump has expressed strong opposition to the idea of Tesla establishing a factory in India to bypass the country’s steep tariffs, calling it “unfair” to the United States. Speaking in an interview with Fox News on Tuesday, Trump criticized India’s high import duties on cars and reiterated concerns over global trade imbalances.

During Indian Prime Minister Narendra Modi’s recent visit to the U.S., Trump highlighted India’s hefty tariffs on imported vehicles but agreed to work towards a trade resolution. Tesla CEO Elon Musk has long opposed India's nearly 100% import tax on electric vehicles, which shields domestic manufacturers like Tata Motors in the rapidly growing but still developing EV market.

Trump claimed it is "impossible" for Tesla to sell cars in India due to these trade barriers. "Every country in the world takes advantage of us with tariffs... It is practically impossible to sell a car in India," he said.

In an effort to attract EV investment, India announced a new policy in March, slashing import taxes to 15% for automakers willing to invest at least $500 million and build a manufacturing plant. According to a Reuters report, Tesla has already identified locations for showrooms in New Delhi and Mumbai and has posted job listings for multiple positions in India.

Despite this, Trump doubled down on his criticism, stating that while Musk has the right to build a factory in India, doing so would be “very unfair” to the U.S.

India’s foreign ministry has not yet responded to requests for comment. Meanwhile, Trump’s push for reciprocal tariffs on nations imposing duties on U.S. imports has heightened fears of a potential global trade conflict.