Trump's Auto Tariff Policy May Have 'Significant' Impact on Tesla

On March 27 local time, it was learned that Elon Musk, the CEO of Tesla, said on a social media platform on March 26 that US President Trump's auto tariff policy would have a "significant" impact on Tesla. Musk said it would affect the prices of Tesla car parts from other countries.

US President Trump signed a proclamation at the White House on March 26, announcing a 25% tariff on imported cars. The relevant measures will take effect on April 2. He told media in the afternoon that day that the US government would start imposing this new tariff from April 3.

According to a document released by the White House on the same day, Trump imposed a 25% tariff on imported cars and certain auto parts under Section 232 of the US Trade Expansion Act of 1962, saying that this move was to protect US "national security". The document shows that the 25% tariff will apply to imported passenger cars (sedans, sport - utility vehicles, etc.) and light - duty trucks, as well as key auto parts (engines, transmissions, etc.), and will be extended to other parts if necessary.

Trump said that the tariff would prompt more production to shift to the US, create new revenue for the government, and help reduce the national debt. However, economists believe that the tariff will drive up car prices and harm consumers' interests.

Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics and a former Treasury official, said that Trump's newly announced tariff was a "major blow" to the auto industry. He said that the stock prices of Ford and General Motors had fallen significantly, and the increase in car costs would reduce demand, especially when consumers' financial conditions were weak. He predicted that there would be "massive layoffs" in US auto and parts companies.