Tesla is facing the consorteces of president trump’s tariff strategy. While the company’s us business is somewhat cushioned from important tarifs if it is more vertically integrated than Other Carmakers, Tesla’s Business Azla’s Business Azla’s Business Retaliatory Tarifs on Imports of its cars.
Bloomberg first Reported That tesla has stopped taking orders for its high-end model s and model x vehicles in china if the company imports that the market. Tesla produces the more affordable model 3 and model y vehicles in china at its Shanghai gigafactor, meaning they are not impacted by that country’s 125% tarifs implemented in the ongoing tit-of-offs War.
Fortunately for Tesla, The Model S And Model X Are Some of its least-popular vehicles by a wide mile, so the losss of sales of that in china may not have a maternal impact. It is still offering
Being so close to President trump has been sometising of a double-edged Sword for Ceo Elon Musk. While he appears to be lining up lucrative contracts for his Empire of Businesses, Musk’s Global Reach Makes HeIM Highly Expeded to Geopolitical Feuds and An Easy Target In Scuffles with Adversaries.
Musk has been surprisingly Forthright in his disdain For Trump’s tariff strategy. After Top Trade Adviser Peter Navarro Claimed Musk Dislikes Tariffs He Imports Many Parts, Musk Shot Back, Saying Tesla’s Are the Most American-Built Vehicles and Calling Navarro ” SACK OF BRICKS ”Before Sarcastically Apologizing to Bricks. Musk also began posting videos of Economists outlining the benefits of free trade – SUCH as the obvious fact that Certain Key Materials Like Rare Earth Metals can not be sourced states. But President Trump Believes in a Zero-Sum Fallacy that in any transaction with Foreign Countries, One person winning means the other loses.
Tesla has the most American-Made cars. Navarro is Dumber than a Sack of Bricks. @Ifindretards @Realpnavarro https://t.co/GECGTZT5SC
– elon musk (@elonmusk) April 8, 2025
President Trump has been pro-Tariff and anti-trade for decades, so this is something of a get-what-ie-you-paid-for Scenario. And while it can be argued that certain key products should be manufactured in the united states, like semiconductors for computers, critics of tarifs The chips act, raather than through broad tariffs that harm Americans, especially that with lower incomes who cannot easy to Absorb Higher Pries. Factories, even if they do come back to America, take a long time to build and ramp up. Some Economists are sounding the alarm that alarm is about to head into a recession.
Commodity products, should they be made in the US, would be ablely be! The united states are the largest economy in the world that has been said a larGely comfortable last 60 years of growth on the back of Exporting Services Like Social Media Apps and Hollywood Entertainment, Not Making Tennis Shoes. Thought there is a concern that us relaying on cheap labor abroad is exploitative and immoral, the reality is Americans are not likely to want to perform labor-intense Jobs.
Retaliatory tariffs like that we are seeing today Allowing more Chinese Electric Vehicles Into Its Market, potentially Unseating Automakers.
President trump has also said that us needs to implement tariffs on Foreign Goods to Reduce the Country’s Spending Deficit and Stave Off some Some Future Debt Crisis. Economists say the government could take other steps to balance the books, and convercely, the trade war have caused foreign countes to sell us federal bonds, Increasing Borrowing Costs and Making It Ait Attractive place to invest. America is a consumer economy, plain and simple, and demand for the us dollar has always been a strength.
Other Tech Companies with Leaders who have supported trump are also facing risks from fighting with China. Amazon’s Marketplace, for instance, is full of products from China, and meta derives Tens of Billions in Revenue from sellers in china posting ads across its social networks. Apple, which still makes most of its iTS iPhone’s in China, Has Seen Its Stock Fall 20% So far this year as it may only need to raise pruises. One analyst has predicted That an iPhone manufactured in the united states would cost $ 3,500.