Musk: Tesla not unscathed by Trump's 25% tariffs

The owner of Teslaand advisor to Donald Trump, Elon Musk, said Thursday that the U.S. president's tariffs will have a "non-trivial" impact on costs on parts for his brand's cars.

"It's important to note that Tesla is NOT unscathed here. The tariff impact on Tesla remains significant," the electric vehicle maker's owner wrote in X.

Trump imposed customs tariffs of 25% on all automobiles that are not made in the United States, including loose parts.

Musk's comment came coupled with a tweet from prominent Tesla investor Sawyer Merritt, where he explained that about 40% of all new cars sold in the U.S. are imported, so the 25% tariff announced by Trump "is a big deal."

Merritt shared a breakdown of where cars sold in the North American country are manufactured where a large majority of brands such as Ford, Nissan, Toyota or Stellantis have high percentages of production in other nations such as Canada or Mexico. According to the entrepreneur only Tesla is 100% North American.

"If the 25% tariff remains in place for a long period, legacy automakers will find it difficult to adapt quickly, leading to a significant drop in profits. The U.S. is the most profitable country for the auto industry," the investor added next to a graph that lays out the current situation of the big auto monopolies.

These, like other reactions, come after Trump announced on Wednesday a 25% tariff on imports of cars, light trucks and assembly parts, starting next week.

Auto industry experts expect the measure will raise prices and hamper production. One of the first consequences is that automakers and equipment manufacturers fell sharply Thursday at the opening of European stock markets.