Tariffs on steel and aluminum imports inflate the cost of electric vehicles.
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AfterexperiencingadropinsalesanditsworstdayonthestockmarketinfiveyearsonTuesday,TeslareceivedaringingendorsementfromPresidentDonaldTrump,whotooktoTruthSocialtopledgehis“supportforElonMusk,”promisingtobuy“abrandnewTesla.”
Trumpfollowedupthisannouncementbyimplementingaglobal25percenttariffonsteelandaluminumimportsonWednesday.Whilethepresident’ssocialmediapostsmaybepro-Tesla,histradepoliciesarenot.
InanunsignedlettertoU.S.TradeRepresentativeJamiesonGreer,TeslasaidTrump’stradewarwouldhave“disproportionateimpacts”onthemanufacturer’sbusiness.TheModelY,forinstance,weighsalmost4,400poundsandiscomposedlargelyofsteelandaluminum.TheCybertruck,meanwhile,reliesonFinnishsuppliersforitsexteriorstainlesssteelpanels.
TheU.S.isthesecond-largeststeelimporterintheworldandsourcesmostofitsaluminumfromoverseas.ThelatestmoveintheTrumptradewar“willaddsignificantcostsforautomakers,
