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 mentioned on Wednesday he would impose 25% tariffs on “all vehicles that aren’t made in america,” he mentioned 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 respect.”
Musk serves as a senior advisor to 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 remove varied federal businesses and companies.
Earlier this month, Trump turned the South Garden of the White Home into a brief Tesla showroom. The corporate delivered 5 of its electrical autos there for the president to examine after he had declared, in a put up on Reality Social, that he would purchase a Tesla to point out help for Musk and the enterprise. Musk stood by his aspect whereas Trump referred to as the autos “stunning” 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, Trump mentioned they might be “internet impartial or they might be good.” He pointed to Tesla’s automobile meeting vegetation in Austin, Texas and Fremont, California and opined that, “anyone that has vegetation in america — it’ll be good for them.”
Tesla not too long ago 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 troublesome or unimaginable to supply inside america.” The corporate urged the USTR to “contemplate the downstream impacts of sure proposed actions taken to handle 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 autos from international 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 influence 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 autos, BYD in China, has by no means been approved to promote its electrical vehicles in america.
Home automakers together with Basic Motors, Ford, Rivian and Tesla noticed shares declining barely after hours following the newest tariffs announcement.
