President Trump has imposed a 25% tariff on imported vehicles and certain auto parts, a move that may boost Tesla's competitive edge. This tariff exempts Tesla as it produces cars in the U.S. However, it could adversely affect competitors like Ford and General Motors, who rely on foreign manufacturing. While Tesla imports parts that will be taxed, its local supply chain efforts may mitigate the impact. As other EV makers face potential price hikes, Tesla is well-positioned, especially with the rollout of a new lower-cost EV expected soon. The permanence of these tariffs remains uncertain.