How Tesla Could Skirt Trump’s Tariffs While Everyone Else Pays Up
Published on: 2025-07-31 00:00:09
President Trump’s sweeping tariff changes have stirred up considerable economic uncertainty and confusion. Higher import duties will affect at least some products in virtually every industry, but some sectors face steeper consequences than others. Automakers, in particular, could struggle as regulators crack down on imported cars and parts, with the notable exception of Tesla, the electric car company led by close Trump confidant and DOGE master Elon Musk.
How exactly the tariff scheme will impact American auto companies remains uncertain, especially as the administration goes back and forth on these policies. However, should things play out as they currently stand, Tesla could largely avoid the high costs others will have to manage.
On March 26, 2025, Trump enacted a 25% tariff on automobiles and their parts. Another 10% baseline duty on all imports took effect in early April. This tax is still in effect as larger reciprocal tariffs on many nations remain in limbo amid a 90-day paus
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