Trump’s auto tariffs are a gift to Tesla 

President Trump slapped 25 % on all imported cars to the United States, including from our direct neighbors in North America. It also put a 25 % tariff on certain parts used to build cars. It is a decision that is likely to charge the cost of new and used cars, but it is also a gift for Tesla, the company run by Elon Musk, his largest financial supporter in the presidential elections.

The new tariff system comes at the time of Maimon for Tesla. The company deals with the repercussions of enhancing musk for extreme right -wing ideology and its involvement with the unpopular government efficiency, which sparked protests around the world. Tesla recently relied on promotional offers and price discounts to boost sales, however fewer EVS is still sold in 2024 than it was in 2023 and was initially in 2025.

The new definitions can be converted into a differential calculation, at least in the United States Tesla, all its cars intended for the North American market in the United States in factories in Fremont, California, Austin, Texas. This means that none of the cars that you sell in the United States will undergo a 25 % vehicle import tax.

Tesla imports about 20 % to 30 % of the ingredients used to build these cars, which will lead to some headaches. Musk admitted to X that Tesla “is not safe” through these definitions and claimed that it would have a “big” effect. But the long -term efforts to create local supply chains near its factories are now rewarded.

Basically, each other auto industry company is worse than Tesla, and the definitions will particularly affect the competing EVS. About 80 % of Ford’s cars are designed in the United States locally. But it makes the entire Mustang Mach-E and a famous pick-up truck (and more affordable) in Mexico.

General Motors, at the same time, builds the jacket and moderation EVS in Mexico. Hyundai found increasing success in its electric cars in the American market, but almost all of these were built in South Korea.

Like Tesla, electric car manufacturers such as Rivian and Lucid Motors will not have to worry about a car import tariff because they are made EVS in Illinois and Arizona, respectively. Like Tesla, they import spare parts that are subject to tariffs – but they are in a worse position to accommodate these costs because the two companies still lose buckets of money on each EV selling them.

This puts a scenario in which the other EVS may see an increase in prices greater than any Tesla. This price separation can become a blessing of Tesla when the low-cost EV offers this year-something that the company said will happen in the next few months.

Of course, Trump announced these definitions after weeks of nonsense, whether he would implement them in the first place. The president claimed that this would be “permanent”. But like many other things he suggests, they can always change.