Trump Pledged To Support Tesla. His Trade Policies Will Do the Opposite.
After experiencing a drop in sales and its worst day on the stock market in five years on Tuesday, Tesla received a ringing endorsement from President Donald Trump, who took to Truth Social to pledge his “support for Elon Musk,” promising to buy “a brand new Tesla.”
Trump followed up this announcement by implementing a global 25 percent tariff on steel and aluminum imports on Wednesday. While the president’s social media posts may be pro-Tesla, his trade policies are not.
In an unsigned letter to U.S. Trade Representative Jamieson Greer, Tesla said Trump’s trade war would have “disproportionate impacts” on the manufacturer’s business. The Model Y, for instance, weighs almost 4,400 pounds and is composed largely of steel and aluminum. The Cybertruck, meanwhile, relies on Finnish suppliers for its exterior stainless steel panels.
The U.S. is the second-largest steel importer in the world and sources most of its aluminum from overseas. The latest move in the Trump trade war “will add significant costs for automakers, suppliers and consumers,” the American Automotive Policy Council told CBS News. In February, Citi Bank warned a 25 percent tariff could increase steel prices by $100 to $150 per short ton. Aluminum producers say these fees will “nearly immediately” result in higher costs for everything from cars to beer cans.Â
The 25 percent tariffs on most Canadian and Mexican goods, which are paused but set to resume on April 2, will inflate vehicle prices even further.Â
Car manufacturing is a globalized industry and relies on inputs from n
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