The tariffs cover parts as well as whole vehicles. The thing announced here is that they'll have a rebate program if the car is 85% manufactured in the US, and the rebate will be in effect for 2 years. So you still pay the tariff on parts, but you get some or all the money back if you meet that threshold. The idea being that it gives the company two years to move their parts manufacturing or sources. But the threshold is so high that only Tesla gets to enjoy the rebate, not any other company.
But even Tesla only maxes out at 75 - how are they eligible? Also wouldn’t surprise me if this carve out is special purpose to give Tesla and only Tesla this rebate.
The article is really bad. Even the original source is just an off-hand comment from Lutnick, not the final regulation.
The idea is that automakers will get special exemptions from the tariffs for what they do import.
Handing out tariff exemptions was one of the red flags people were raising during this process. It becomes a lever the administration can pull to grant favor to specific companies. Everyone else suffers.
Jtsummers|10 months ago
vlovich123|10 months ago
crazygringo|10 months ago
frabcus|10 months ago
Would be nice to see a technical definition for how the % imported is worked out.
Aurornis|10 months ago
The idea is that automakers will get special exemptions from the tariffs for what they do import.
Handing out tariff exemptions was one of the red flags people were raising during this process. It becomes a lever the administration can pull to grant favor to specific companies. Everyone else suffers.
decimalenough|10 months ago
"Final" regulation: https://www.whitehouse.gov/presidential-actions/2025/04/addr...
tim333|10 months ago