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Elon Musk warned that the 25 percent tariff on non-US manufactured vehicles, imposed by President Trump, will significantly impact the cost of parts in Tesla cars from other countries.
Elon Musk is the head of EV Maker Tesla.
Donald Trump Tariff: Tech billionaire Elon Musk said that the price of parts in Tesla cars that come from other countries will be affected following US president Donald Trump’s decision to impose 25% tariff on all cars on made in the United States. He further warned that the cost impact is not trivial.
The move is set to raise tensions with the trading countries amid the looming trade war.
The tariff will come into effect from April 2, as announced earlier – a date that he has dubbed as “Liberation Day” for the US. The latest move is likely to impact foreign-made cars and light trucks, besides existing tariffs on such goods.
In response to an X post suggesting Tesla might benefit from the 25 percent tariff on non-US manufactured vehicles, Musk clarified that this tariff would impact the price of parts used in Tesla cars from other countries and that the cost effect is significant.
“What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States. If they’re made in the United States, it is absolutely no tariff,” Trump said at the White House.
To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial.— Elon Musk (@elonmusk) March 27, 2025
Trump added that it would lead to spur in factories in the US and reduce reliance on a “ridiculous” supply chain from across North America and beyond.
Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.— Elon Musk (@elonmusk) March 27, 2025
In a post claiming that 40% of all new cars sold in the US are imported, the tariff is a big deal. In a response to the post, Musk said that “Tesla is not unscathed here”. He said that tariff impact on Tesla is still significant.
