Musk reveals Trump’s 25% auto tariffs will push Tesla prices higher

Tesla's new car prices are set to rise due to trade restrictions imposed by the US President Donald Trump's administration on foreign countries.

CEO Elon Musk revealed his prediction via his official X account following US President Donald Trump's announcement of a 25% import tariff on all cars manufactured outside the country, Caliber.Az reports.

"Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant," the billionaire posted on March 26

While Tesla manufactures all of its cars sold in the US domestically, Musk explained that the tariff restrictions will affect the cost of Tesla car parts sourced from other countries which will lead to a substantial price increase. “To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk added in a separate post on X.

Tesla’s shares fell nearly 6% following Trump’s tariff announcement, further impacting the already struggling carmaker that has recorded dropping sales volumes and been the target of vandalism acts across the US due to the CEO's political involvement with the current administration.

By Nazrin Sadigova