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Is Tesla Caught in US-China Tariff Crossfire?

In the US, Tesla has an edge since it builds all its cars for sale there in California and Texas. That keeps it safe from tariffs that hit foreign carmakers bringing cars into the country. New rules might add a 25% tax on cars made outside the US, but parts from Canada and Mexico get a pass, which could hurt Tesla’s rivals more than Tesla itself.

Still, it’s not all smooth sailing. Tesla’s use some parts from China, and tariffs on those could raise costs anyway. Other countries, like Canada, might slap big taxes, like 100%, on Tesla cars in return, messing up sales outside the US. So, while Tesla’s doing better than some, it’s not out of the woods.

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