Points out that a US car going to China pays 25% duty versus 2.5% for a Chinese car coming to the US.
"an American car going to China pays 25% import duty, but a Chinese car coming to the US only pays 2.5%, a tenfold difference"
What do you think of tariffs?
Q2619 answers2018-2026
Short answer
Much easier; solar tariffs are nuts, though countervailing tariffs against subsidies can be justified.
All 19 answers, oldest to newest
Says he just wants a fair outcome where tariffs and rules are equally moderate.
"Just want a fair outcome, ideally where tariffs/rules are equally moderate. Nothing more."
He says Tesla gains a big efficiency by making affordable cars on the continent where the customers are.
"I think there's a pretty big fundamental efficiency gain that Tesla has by just making cars, especially the affordable cars 3 and the Y."
Neither Tesla nor he asked for the tariffs; Tesla competes in China with no tariffs, and he favors no tariffs.
"I in general I'm I'm in favor of of no tariffs"
He says Giga Mexico is paused until after the election because of possible tariffs.
"we currently are paused on Giga Mexico. I think we need to see just where things stand after the election."
He deals with global automotive supply chains at Tesla and thinks you need to be careful with tariffs.
"I think you need to be careful with tariffs"
He said important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.
"Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant."
Asked Why, he said among many other things, the book makes the point that tariffs between China and the West have been an ongoing challenge for 400+ years!
"Among many other things, the book makes the point that tariffs between China and the West have been an ongoing challenge for 400+ years! https://t.co/p5MkvQ4tJX"
He says tariff decisions are the President's, but he has long said lower tariffs are generally good for prosperity.
"I've been on the record many times as saying that I believe lower tariffs are generally a good idea for prosperity."
He says he generally favors free trade and lower tariffs.
"generally I'm an advocate for free trade and lower tariffs."
He stresses that tariff decisions rest entirely with the US President.
"the tariff decision is entirely up to the President of the United States."
He says Tesla is the least affected car company with respect to tariffs, at least in most respects.
"the least affected car company with respect to tariffs, at least in most respects."
He says Tesla has worked for years to localize supply chains, which makes it less affected by tariffs.
"something that Tesla has been working on for several years is to localize supply chains"
Free trade is more efficient; he tried to dissuade the president unsuccessfully.
"I've tried to dissuade him from this point of view but unsuccessfully"
He said if tariffs were applied between each of the 50 US states it would be an economic catastrophe, and asked why that logic would change for other countries.
"A simple thought experiment solves this apparent conundrum: if tariffs were applied between each of our 50 states, we would obviously have an economic catastrophe. Now, why would that logic change if you extended it to other countries?"
He said tariffs are good for the average citizen when used to lower other countries' barriers or for national security, otherwise they are bad.
"When tariffs are used as a tool to get other countries to lower their tariffs and non-tariff barriers or for national security, they are good for the average citizen, otherwise they are bad https://t.co/WBbhJUqTEJ"
US solar tariff barriers are extremely high, making deployment artificially expensive because China makes almost all the solar. He still plans SpaceX and Tesla solar manufacturing in the US.
"the tariff barriers for solar are are extremely high"
He said importing solar cells is very expensive due to tariffs, but domestic production can and will be done.
"Importation of solar cells is very expensive due to tariffs, but production domestically can and will be done"
Much easier; solar tariffs are nuts, though countervailing tariffs against subsidies can be justified.
"The tariffs are nuts"