The Trump administration this year imposed a 25% tariff on imported vehicles and auto parts that the auto industry has said will disrupt supply chains and raise car prices.Automakers in the United States, including Tesla, must build entire vehicles including all their parts in the country instead of manufacturing parts abroad, President Donald Trump said on Friday.
The comments from Trump, at a press conference marking Tesla CEO Elon Musk’s last official day at the White House as a senior adviser, were in response to a question on tariffs hurting companies such as Tesla that import auto parts from other countries.
“He’s going to end up building his whole car here. Pretty much he does,” Trump said referring to Musk. “All of the manufacturers will build their parts here too.”
“It used to bother me they make a part in Canada, a part in Mexico, a part in Europe, and sent all over the place, and nobody knew what the hell was happening,” Trump said. “But over the next year, they’ve got to have the whole thing built in America. That’s what we want.”
The Trump administration this year imposed a 25% tariff on imported vehicles and auto parts that the auto industry has said will disrupt supply chains and raise car prices.
While many U.S. automakers import vehicles manufactured outside the United States, Tesla builds its electric vehicles in the country. But many of its key parts are imported.
Tesla did not immediately respond to a request for comment.
