Trump tariffs have implications for Tesla vehicles, as vehicle parts from other countries will get taxed: Musk
The newly-announced 25% tariff on foreign-made cars imported into the United States announced by United States president Donald Trump will have implications for the cost of parts for Tesla vehicles, Tesla CEO Elon Musk has […] The post Trump tariffs have implications for Tesla vehicles, as vehicle parts from other countries will get taxed: Musk appeared first on Paul Tan's Automotive News.
The newly-announced 25% tariff on foreign-made cars imported into the United States announced by United States president Donald Trump will have implications for the cost of parts for Tesla vehicles, Tesla CEO Elon Musk has said.
In response to a post on X by Tesla Owners Silicon Valley that suggested “Tesla could benefit the most” from the tariffs on cars made outside the United States, Musk responded to say that the tariffs will affect the price of Tesla car parts which come from other countries, and that “the cost impact is not trivial”.
The import taxes of 25% on foreign-made cars will take effect on April 3, 2025 at 12.01am ET, while that for car parts will take effect “no later than May 3”, Trump said. It is the latter than will affect parts that go into Tesla vehicles, which will bring the aforementioned impact to the cost of Tesla vehicles.
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
The import tax on vehicles will apply to imported passenger vehicles, which include sedans, SUVs, crossovers, minivans and cargo vans, as well as light trucks, according to a fact sheet published by the White House.
Parts that will be taxed include engines, transmissions, powertrain parts and electrical components, and there are “processes to expand tariffs on additional parts if necessary,” the fact sheet read.
The White House fact sheet also mentioned the United States–Mexico–Canada Agreement (USMCA), for which the document said that importers of the cars under the free trade treaty will be given the opportunity to certify their US-sourced content. “Systems will be implemented such that the 25% tariff will only apply to the value of their non-US content,” it wrote.
The post Trump tariffs have implications for Tesla vehicles, as vehicle parts from other countries will get taxed: Musk appeared first on Paul Tan's Automotive News.
