US President Donald Trump talks to the media at the Oval Office at the White House on March 26, 2025 on Washington, DC, US, March 26, 2025.
Evelyn Hawkstein | Roots
President Donald Trump said on Wednesday that he would “put 25% tariffs on all cars which are not in the United States,” he said that his chief advisor, said, said, Tesla CEO Elon Musk did not weigh the matter, “because they could struggle.”
He said that Musk never “asked me for a favor in business.”
Musk served as Senior Advisor to President Donald Trump, before he contributed $ 290 million to return to the White House. While Musk is at the top of its companies, including SpaceX and Tesla, it is also leading the government’s efficiency department (DOGE), which is an attempt to slash the expenses of the federal government, to slash workers and consolidate or abolish various federal agencies and services.
Earlier this month, President Donald Trump converted the South Lawn of the White House into a temporary Tesla showroom. The company gave five of its electric vehicles to inspect the President there, when he announced, in a post on truth social, that he would buy a Tesla to show support for Musk and Business. Musk stood on his behalf, while Trump called the vehicles “beautiful” and praised the unconventional design of the angular, Steel Tesla Cybertrok.
Asked by reporters whether the new tariff would be good for Musk’s autos business, Tesla, President Donald Trump said they could “be pure neutral or they could be good.” He pointed to Tesla’s vehicle assembly plants in Austin, Texas and Frament, California and said, “Any person has plants in the United States – this is going to be good for them.”
Tesla recently wrote in a letter to the US trade representative that “even” with aggressive localization of its supply chain “domesticly,” is difficult or impossible for a source of some parts and components within the United States. “The company urged the USTR to” consider the downstream effects of some proposed works done to address unfair trade practices. “
Tesla and other automkers usually buy headlamps, automotive glasses, brakes, body panels, suspension parts and printed circuit boards for various electrical systems in their vehicles from foreign suppliers in Mexico, Canada and China.
Musk and Tesla did not immediately respond to the request for comment on how the new 25% tariffs can affect their business.
Tesla Competition with more vehicle manufacturers selling more electric models than ever before. However, BYD in China, the company’s most co -operative rival in battery electric vehicles, has never been authorized to sell its electric cars in the United States.
Domestic vehicle manufacturer General Motors, Paid, Rivian And Tesla saw a decline in shares after hours after the announcement of the latest tariff.
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