'Tesla is NOT unscathed': CEO Elon Musk as Trump's 25% auto tariffs to hit next week

In a reaction to Donald Trump's latest auto tariffs on foreign cars, Tesla CEO Elon Musk has said that the tariffs will negatively affect Tesla too. He emphasised that the effect will be significant, meaning it's a noticeable and important problem for the company.

The announcement, which imposes a 25% tariff on all imported cars and light trucks starting next week, marks a dramatic escalation in the administration’s trade policy.

“Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant,” Musk posted on X on Wednesday, moments after Trump declared the tariffs would be permanent.

On Wednesday, the White House confirmed that the tariffs will take effect on April 2, with collection beginning on April 3. "What we're going to be doing is a 25 per cent tariff on all cars that are not made in the United States. This will be permanent," Trump said from the Oval Office. "We start off with a 2.5 per cent base, which is what we're at, and go to 25 per cent."

He insisted the measure would trigger rapid economic growth. “This will continue to spur growth like you haven't seen before. But if you build your car in the United States, there is no tariff.”

The move is part of Trump’s broader effort to reset trade relations. On April 2—termed “liberation day” by the administration—the president is expected to introduce a series of reciprocal tariffs on imported goods, targeting countries he says unfairly tax U.S. products.

While Trump has positioned tariffs as a way to revive American manufacturing, the strategy has fueled market volatility and raised concern among economists, corporate leaders, and investors.

Trump on Musk

Musk’s statement sharply contrasts Trump’s earlier suggestion that the tariffs could be “net neutral or maybe good for Tesla.” The president also clarified that Musk had no advisory role in shaping the auto tariff policy. “Musk did not advise on auto tariffs,” Trump said. “He has never asked me for a favour.”

Earlier in February, Trump hinted at the coming auto tariffs without revealing specifics. By Monday, he confirmed they would arrive “in the very near future.”

He added that some reciprocal tariffs may be softer than anticipated. “We're going to make it very lenient,” Trump said. “I think people will be very surprised. It'll be, in many cases, less than the tariff they've been charging for decades.”