Tesla rises to the only beneficiary of the new tariff release of US cars

In a sweep policy shift that could convert the US automotive supply chain calculation, Trade Secretary Howard Lutnick said that vehicles with at least 85% domestic content release completely incoming car tariffs that enter into force at the end of this year.

This new threshold, though seemingly neutral, leaves only one car manufacturer: Tesla.

According to the latest data of the United States University Kogod Business School, only three vehicles are currently responding to 85% domestic content to the benchmark – Tesla Model 3 and Tesla Model Y. Two versions of one versions. Every other car manufacturer, including Legacy players like Ford, GM, Honda and Toyota, Falls short.

The new tariff structure is two -level: the starting line of 10% on all foreign cars and components, and a sharp 25% rate for vehicles and parts that do not match the minimums of local content. Although car manufacturers can still apply for a limited time repayment program to restore some of the costs, the window will close this aid within two years.

Emptying the 85% sign now creates serious pricing and regulatory headwinds. Car manufacturers must either quickly configure their supply chains – costly and complex ventures – or absorb the tariff load at the expense of their periphery and competition price.

Politics or favor?

Although politics is presented as a measure to support Americans, skepticism is answered throughout the car sector and in the political spectrum. The decision to establish a liberation bar for exactly 85% has raised the eyebrows because only Tesla responds to this threshold today.

In fact, even Ford Mustang, one of the American cars, does not actually qualify for branding and heritage. Also, Alabama is not assembled Honda Pass. The difference between a small process point now determines whether or not hefty tariffs apply to the model.

Elon Musk, CEO of Tesla, who has been repeatedly present in the White House in recent weeks, seems to have used significant political capital from their visits. When the company has suddenly made a decline in revenue, its profit fell 71% in the middle of a public setback, related to Musk political associations, Tesla shares jumped 10% after the news broke last week's regulatory rebound.

The setback in question: The end of the federal rule that requires car manufacturers to partially automated vehicles. The Ministry of Transport has announced that only Autonomous Systems of Level 2, such as Tesla autopilodies, would be released from the air accident reporting mandate. Musk had previously criticized this rule, claiming that it unfairly threw Tesla into the negative light.

However, industry safety analysts warned that the loss of reporting requirements could reduce transparency by making it harder for regulators and consumers to monitor the possible deficiencies of automated driving systems.

Tesla Preferred Regulatory Pattern

All in all, these moves reflect a broader regulatory climate, which seems to be more and more on the Musk agenda. First, the white house moved to the regulatory burden of self -driving technology. It has now structured a large -scale tariff freedom around the domestic procurement threshold, which only Tesla meets.

Other car manufacturers, such as GM and Ford, who have long claimed that global supply chains are essential for competitive costs, are now facing urgent issues of their dependence on foreign components. Japanese and European manufacturers, even those that put vehicles in the US, may disappear from tariff liberation, unless they are significantly overhauled strategies.

Smaller EV start -ups, which are largely dependent on imported components from China, including Rivian and Lucid, are a particularly difficult blow. Many have not yet built deep domestic supply chains and can work hard on a new cost load.

Business as a policy

The timing of the executive order – published late on Monday night with the Facts page of the White House – has only added to the idea that business and politics are increasingly intertwined. The fact layer confirmed the new tariff guidelines but did not deal with why 85%was selected as the limit. Nor did it provide clarity about how domestic content is controlled or audited.

When the control intensifies, critics claim that the close ties of the administration with the risk of musk blurred between fair industrial policy and favoring the border.

Whether these changes will help to revive domestic production or just reward the most politically connected players is left to the future. It is clear that the road in front of the US car sector is now passing through a Tesla – a company that increasingly shapes not only cars but also politics itself.

The enforcement order will be published in the Federal Register this week later, with additional instructions for car manufacturers and suppliers that will navigate in complex new rules. Meanwhile, industry executives are scrambling to assess how fast they can reorganize the actions to avoid sudden penalties-or whether it is even possible to play with Tesla in today's Washington.