Tesla faces Trump’s 25% tariffs as Musk stays silent
Tesla faces a fresh hurdle after President Donald Trump announced 25% tariffs on all non-U.S.-made cars on Wednesday. The President clarified that Elon Musk stayed silent and provided no input into the 25% tariffs.
“He may have a conflict,” Trump noted. He added that Musk, who heads Tesla and the efficiency-driven DOGE initiative, has never asked for business favors.
Trump’s tariffs are set to begin on April 2 for imported cars, and by May 3, the levies will hit imported auto parts, stirring questions about Tesla’s fate. Trump told reporters the impact might be “net neutral or good,” mentioning Tesla’s plants in Austin, Texas, and Fremont, California.
There are some new Tesla Model Y vehicles without the Launch Edition badging at Giga Texas
This could be the sign we need that production of other trims is set to begin https://t.co/h8v4lPUA58 pic.twitter.com/27tSvFaJPT
— TESLARATI (@Teslarati) March 26, 2025
“Anybody with plants in the U.S.—it’s going to be good for them,” he said. Yet Tesla recently warned the U.S. Trade Representative in a letter that “certain parts and components are difficult or impossible” to source domestically, even with ‘aggressive localization.’ The company urged caution over the “downstream impacts” of trade actions.
According to CNBC, Tesla and other automakers rely on foreign suppliers in Mexico, Canada, and China for headlamps, brakes, glass, suspension parts, and circuit boards. Musk has commented that Trump’s tariffs would significantly impact Tesla.
Trump’s tariffs have affected companies abroad, including Tesla suppliers in India. Competition is heating up as more brands roll out electric models, though China’s BYD remains barred from U.S. sales. Shares of Tesla, General Motors, Ford, and Rivian dipped slightly after hours following the announcement.
The post Tesla faces Trump’s 25% tariffs as Musk stays silent appeared first on TESLARATI.
Source: https://www.teslarati.com/tesla-trump-25-percent-tariffs-elon-musk/
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