U.S. President Donald Trump speaks to the media within the Oval Workplace on the White Home in Washington, D.C., U.S., March 26, 2025.
Evelyn Hockstein | Reuters
After President Donald Trump stated on Wednesday he would impose 25% tariffs on “all automobiles that aren’t made in america,” he stated his key advisor, Tesla CEO Elon Musk, had not weighed in on the matter, “as a result of he might have a battle.”
He added that Musk had by no means “requested me for a favor in enterprise in any way.”
Musk serves as a senior advisor to President Donald Trump, having earlier contributed $290 million to propel him again to the White Home. Whereas Musk stays on the helm of his corporations, together with SpaceX and Tesla, he’s additionally main the Division of Authorities Effectivity (DOGE), which is an effort to slash federal authorities spending, personnel and consolidate or eradicate varied federal companies and providers.
Earlier this month, President Donald Trump turned the South Garden of the White Home into a brief Tesla showroom. The corporate delivered 5 of its electrical automobiles there for the president to examine after he had declared, in a submit on Fact Social, that he would purchase a Tesla to indicate assist for Musk and the enterprise. Musk stood by his aspect whereas Trump known as the automobiles “lovely” and praised the unorthodox design of the angular, metal Tesla Cybertruck.
When requested by reporters whether or not the brand new tariffs could be good for Musk’s autos enterprise, Tesla, President Donald Trump stated they could be “internet impartial or they could be good.” He pointed to Tesla’s automobile meeting crops in Austin, Texas and Fremont, California and opined that, “anyone that has crops in america — it will be good for them.”
Tesla just lately wrote, in a letter to the U.S. Commerce Consultant, that “even with aggressive localization” of its provide chain domestically, “sure elements and elements are tough or unimaginable to supply inside america.” The corporate urged the USTR to “think about the downstream impacts of sure proposed actions taken to deal with unfair commerce practices.”
Tesla and different automakers generally purchase headlamps, automotive glass, brakes, physique panels, suspension elements, and printed circuit boards for varied electrical programs of their automobiles from overseas suppliers in Mexico, Canada and China, particularly.
Musk and Tesla didn’t instantly reply to a request for remark about how the brand new 25% tariffs might affect their enterprise.
Tesla faces an onslaught of competitors with extra automakers promoting totally electrical fashions than ever earlier than. Nevertheless, the corporate’s most formidable rival in battery electrical automobiles, BYD in China, has by no means been approved to promote its electrical automobiles in america.
Detroit automakers Normal Motors and Ford noticed their shares falling in after hours buying and selling, whereas EV makers Tesla and Rivian noticed shares almost flat or barely greater in response to the tariffs announcement.
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