US President Donald Trump spoke to the media on March 26, 2025 in his oval office in the White House in Washington, DC.
Evelyn Hockstein |Reuters
He said his key adviser after President Donald Trump said he would impose a 25% tariff on “all cars not made in the US” on Wednesday. Tesla CEO Elon Musk didn’t place any emphasis on the issue “Because he could be at odds with conflict.”
He added that Musk “never ever asked me for favors in business.”
Musk served as a senior adviser to Trump and previously donated $290 million to bring him back to the White House. Musk continues to helm his companies, including SpaceX and Tesla, but he also leads the government’s Department of Efficiency (DOGE).
Earlier this month, Trump transformed the White House South Lawn into a temporary Tesla showroom. The company delivered five electric vehicles for the president to be inspected after the president declared he would buy Tesla to show his mask and support for the business. Musk stood by him, but Trump called the vehicle “beautiful” and praised the unorthodox design of Tesla’s cyber truck in horned steel.
When asked by a reporter if the new tariffs would be good for the mask auto business, Trump said they were “net neutral or maybe they’d be good.” He pointed to Tesla’s vehicle assembly plants in Austin, Texas and Fremont, California, and said, “Anyone who has plants in the US, that would be good for them.”
In a letter to US trade representatives, Tesla wrote in a recent letter to US trade representatives that “even though there is active localization” of the supply chain and that certain parts and components are difficult or impossible to source within the United States. The company urged USTR to “consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”
Tesla and other automakers generally purchase headlamps, automotive glass, brakes, body panels, suspension parts and printed circuit boards for the various electrical systems of the vehicle from foreign suppliers in Mexico, Canada and China.
Musk and Tesla did not immediately respond to requests for comment on how the new 25% tariff would affect their business.
Tesla More than ever, more automakers are facing a competitive onslaught when they sell fully electric models. However, the company’s most frightening rival in battery electric vehicles, China’s BYD, is not permitted to sell electric vehicles in the US.
Domestic car manufacturers including General Motors, Ford, Livian And Tesla saw a stock falling slightly after opening hours after the latest tariff announcement.
