Featured Image Credit: Kayla Bartkowski/Getty Images
Topics: Donald Trump, Elon Musk, Money, Politics, US News
Mia Williams
Topics: Donald Trump, Elon Musk, Money, Politics, US News
Elon Musk has spoken out after Donald Trump introduced tariffs in the US that will affect the profits made by Tesla.
Donald Trump has been accused of setting off a global trade war after slapping tariffs on the likes of Mexico, Canada, and the EU.
The president announced on Wednesday (26 March) that he would be targeting imported vehicles and vehicle parts with a 25 percent tax, a move which he noted will be 'permanent'.
But his best pal Elon Musk, of course, owns a giant electric car company - which isn't exempt from the heavy tariffs.
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The tech billionaire has now spoken out about how the tax will affect his company, despite Trump saying just weeks ago that he wanted to show 'confidence and support' to Tesla.
Since Trump's announcement, shares in Tesla were notably spared from the hit, unlike carmakers in other parts of the world - including Japan, Germany, and the UK.
Taking to X to share his thoughts, Musk said: "Important to note that Tesla is NOT unscathed here.
"The cost impact is not trivial."
Tesla's Model Y, one of the top American-made cars, still only sources 70 percent of its parts from the US.
"The major takeaway I think people should know about this is no vehicle is 100% US-made," Musk added.
He continued: "The consumer is going to feel it across the board and I really don't think that any automaker is going to be spared from this, Tesla included."
While many major car companies have factories and operations in America, a lot also don't.
Trump has previously spoken very highly of Tesla, even promising to buy a 'brand-new' one to show his support for his close friend.
Taking to Truth Social, his social media platform, the president said: "The radical left lunatics, as they often do, are trying to illegally and collusively boycott Tesla, one of the World’s great automakers, and Elon’s 'baby', in order to attack and do harm to Elon, and everything he stands for.
"They tried to do it to me at the 2024 presidential ballot box, but how did that work out?
"In any event, I’m going to buy a brand-new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American."
Trump's plan for car tariffs is just the latest in his wider move to protect American businesses and boost manufacturing within the country.