Tesla Receives Full Tariff Exemption While Rivals Face High Fees: Is Elon Reapin

President Trump has enacted an executive order that preserves the current 25% tariffs on auto imports while alleviating financial pressure on automakers by ceasing tariff stacking and implementing a temporary rebate of up to 3.75% on parts for the initial year, which will decrease to 2.5% in the second year.

The order also provides complete tariff exemptions for vehicles manufactured in the U.S. with a minimum of 85% U.S. or USMCA content, while partial exemptions are available for vehicles with lower domestic content, thereby significantly lessening cost burdens. Due to Tesla's manufacturing operations in the U.S. and its high domestic content, which often surpasses 85%, its vehicles are entirely exempt from the new tariffs, in contrast to most competitors who will still incur partial or full duties. Major industry players such as Ford and GM have expressed support for the rebate and relief from stacking, but analysts point out that Tesla is currently the sole major automaker positioned to take advantage of a full exemption under the 85% rule. Reporting by fossbyte