NEW DELHI: US President Donald Trump has said it was “very unfair” for Elon Musk's Tesla to set up a factory in India amid the former's moves to increase tariffs significantly.

The comment, made during Donald Trump and Elon 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.

Trump reiterated his claims about India’s high tariffs, a point reinforced by Elon Musk, Tesla’s owner and the head of the Department of Government Efficiency (DOGE).

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.

Turning to Musk, he said, “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…” Musk then immediately intervened to complete Trump’s sentence and said, “The tariffs are like 100% import duty.”

The import duty on EVs that cost at least $35,000 is 15% 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 Modi… Here’s what you do. We are going to… be very fair with you.”

Before Trump completed his thought, the interviewer asked him if the tariffs India charged were 36%. Trump said, “Much much higher.” Musk added that his bit, “It’s 100% on auto imports..100%.”

Elon 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 they would now “make a lot of money” and “a lot of businesses” would come pouring in.

Elon Musk's Tesla has already identified locations for showrooms in New Delhi and Mumbai and has opened up 13 mid-level posts in India, reported news agency Reuters.

The company has not had much of a presence in India due to high tariffs however, India has now reduced the basic customs duty on high-end cars priced above $40,000 from 110% to 70%.