Tesla CEO Elon Musk said that United States President Donald Trump's newly announced auto tariffs will have a "significant" impact on the company.
"Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant," Musk said on X. "To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial," he added in a separate post shortly after.
Trump announced on Wednesday that he was imposing a 25% tariff on all cars coming into the US, with the White House later clarifying that foreign auto parts would also be taxed at the 25% rate. However, automobile parts that comply with the US-Mexico-Canada Agreement (USMCA) will be exempt from the tariffs until the commerce secretary, in consultation with US Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-US content.
