Written by Cláudio Afonso | LinkedIn | X
When asked his opinion on U.S. tariffs on imported EVs aimed at protecting the manufacturing industry, Tesla CEO Elon Musk said on Monday he is “against sudden giant tariffs,” arguing they would make it impossible for major manufacturers to adjust their supply chains.
In a new interview with Joe Rogan, Musk stated that companies such as Tesla need time to build a new factory, install equipment and train people before they can start expanding their production in the United States.
Musk warned that sudden shifts in tariffs could have significant repercussions on production costs and logistics.
“So when there are sudden changes in tariffs, then you’re like, well, you regret it, a factory like somewhere else that’s making a part that goes into the car, now it’s suddenly, if that part’s suddenly twice as expensive, it like messes everything up, you know?” he said, emphasizing that tariffs should “be predictable, so that companies can adjust their supply chain.”
Here’s the complete answer from Tesla’s CEO during the Joe Rogan podcast.
He argued that while companies are generally willing to increase U.S. manufacturing, the transition requires time.
“I think companies are more than happy to increase manufacturing in America; it’s just that you can’t do it instantly,” he said. “So if you put in, if you put up giant tariffs immediately and don’t give companies a chance to build factories in America, because you have to, you’ve got to move atoms, like you’ve got to build a building, you’ve got to install equipment, you’ve got to train people. Like that doesn’t happen instantly.”
Musk called for a gradual approach to tariffs, allowing companies time to adjust. “So you just got, you want to have, for tariffs, you want to have a ramp so that companies can adjust and build the factories and train the people and get the equipment in place. Otherwise you basically just shock the system and it breaks, or bad things happen.”
“I’m against like sudden giant tariffs,” he concluded, citing the logistical challenge of moving heavy equipment. “You just can’t do that overnight, it’s literally impossible. So I think we want to be thoughtful about tariffs and give companies a ramp. I mean, I do generally agree that America should do more manufacturing.”
President Joe Biden announced in May that tariffs on Chinese electric vehicles would increase from 25 percent to 100 percent to prevent subsidized Chinese products from overwhelming the U.S. market and hindering the development of the American green technology sector.
Earlier this year, The Alliance for American Manufacturing said the arrival of Chinese cars to the US market would be an “extinction-level event” for the local brands.
Written by Cláudio Afonso | LinkedIn | X
