Elon Musk’s Tesla is poised to gain a major advantage over rival carmakers after Donald Trump’s administration announced a new automotive tariff plan — and Tesla is the only automaker currently exempt.
Since April 2, Trump has been promoting his so-called “liberation day” and economic agenda, promising benefits for American industry. But just before that, the White House revealed a sweeping 25% tariff on imported automobiles and parts — a move set to shake the auto industry.
However, buried in the policy rollout is a crucial detail: there’s a loophole — or rather, an exemption — that just happens to favor Tesla.
A fact sheet released on April 29 outlines how manufacturers can avoid the tariffs entirely if they meet a strict domestic production threshold.
According to the plan, vehicles with 85% or more domestic content will be fully exempt from the new tariffs. At present, only Tesla meets that threshold.
Specifically, three Tesla models — the Model Y, Model Y Long Range, and Model 3 Performance — exceed the 85% U.S.-made content requirement, as reported by Fuel ARC.
Other automakers come close: Ford’s Mustang GT models reportedly reach 80%, while Honda’s Passport AWD sits at 76.5%. However, they still fall short of qualifying for the exemption.
Not all Tesla models make the cut either. The Cybertruck, with 82.5% domestic content, and the Model S and X, both at 80%, do not meet the requirement.
The announcement has sparked online backlash, with critics accusing the administration of tailoring policy to benefit Elon Musk specifically — especially in light of Musk’s growing alignment with Trump.
One Reddit user sarcastically wrote:
“Oh c’mon, there’s literally a multi-month difference between when Musk gave Trump $290 million and when the government started doing things that explicitly benefit him. There’s no way you can legitimately say that the two are related.’ – Most of my relatives, probably.”
Another quipped:
“What an amazing coincidence! This is.”
A third added:
“I’ll be in the market for a car soon. I’ll give you one guess which company won’t be on my list.”
And another noted a shift in Tesla’s popularity:
“I’m in San Francisco this week for the first time since early last November. Back then almost every third car was a Tesla. Now I barely see any.”
