Tesla will hardly feel the impact of Trump's tariffs on the automotive industry - Newsweek
Kyiv • UNN
Insurify experts believe that Tesla will be the least affected by Trump's tariffs. Prices will increase by 5%, and insurance by 3%, which is the lowest rate among brands.
Insurify experts claim that Tesla will be among the companies least affected by Trump's "tariffs". At the same time, the company's sales prices will increase by 5%, and insurance costs will increase by 3%.
UNN reports with reference to Newsweek.
Details
In an interview with Newsweek, experts from the Insurify website, which compares auto and home insurance, stated that Elon Musk's Tesla will have a good chance of remaining virtually unscathed by the actions of US President Donald Trump.
We will remind that the administration of the Republican president introduced a 25% duty on the import of auto components. Previously, a 25 percent import tax on engines, transmissions and other important automotive parts came into force. Experts estimate that this will lead to increase in the price of cars, repairs and insurance premiums.
Although Trump himself presented his tariffs as a way to help American production thrive in the face of global competitors, companies and dealerships have long expressed concern.
Representatives of the auto business point to rising costs, which are expected to lead to higher prices for American consumers in the short term.
According to the White House, about 75 percent of the materials used in cars purchased by Americans come from outside the United States. Tariffs have increased the cost of importing cars and auto parts, which in turn will make car prices more expensive, as their production is more expensive
He also noted that customs tariffs may increase auto insurance rates for all models. At the same time, newer models, according to Brennan, will face a significant increase. Why? Because more expensive cars are generally more expensive to insure, and they may require more specific parts.
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At the same time, Tesla will be among the companies that will be least affected, Insurify experts found.
The company's sales prices are expected to increase by only 5%.
Insurance costs – by 3%. This, by the way, is the lowest growth among the brands analyzed by the team.
The most popular new Tesla models, Model X and Model 3, are assembled in the USA with at least 60 percent domestic production
Thus, compared to other popular models, Tesla cars have a smaller share of foreign materials that are subject to taxation.
In addition, Tesla's foreign components mainly come from Mexico, where lower tariff rates apply to cars compared to vehicle components from countries that are not members of the Agreement between the United States, Mexico and Canada (USMCA)