Tesla's Exclusive Tariff Exemption: A Major US Auto Policy Shift

The US Commerce Department announced that vehicles with 85% or more domestic content will be fully exempt from new auto tariffs. Currently, only Tesla qualifies, with some Model 3 and Model Y variants receiving a complete tariff exemption. This move has sparked controversy, with accusations of favoritism towards Tesla. While domestic content rules appear neutral on paper, the real-world effect creates a significant advantage for Tesla. This policy shift may be linked to Elon Musk's recent frequent interactions with the White House. Other automakers, such as Ford and Honda, while having some high domestic content vehicles, fall short of the exemption threshold and will face higher tariffs.
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