Trump said that vehicles such as Tesla, Inc. (TSLA.US) must be 100% American-made. Musk resigned but still promised to push forward government reforms.
Trump said that American car manufacturers must complete all production of vehicles and components in the United States.
President Trump made it clear at a White House press conference on Friday that American car manufacturers, including Tesla, Inc. (TSLA.US), must now complete all production of vehicles and components in the United States, and can no longer rely on overseas parts suppliers.
These remarks came on the last day of Tesla, Inc.'s CEO Elon Musk serving as a senior advisor at the White House, and the press conference served as a farewell ceremony before he stepped down. In response to a question about how tariffs would affect companies reliant on overseas parts (such as Tesla, Inc.), Trump pointed out, "He (Musk) will do it all here in the United States in the end, he's pretty much doing that now," Trump said. "All manufacturers will also bring parts production back to the United States."
"What used to bother me a lot was one part made in Canada, one in Mexico, another one in Europe, and then shipping all over the place, no one knows what's happening," he continued. "But in the next year, all parts must be made in the United States. That's what we want."
Previously, the Trump administration imposed a 25% tariff on imported cars and parts, which sparked strong backlash from the automotive industry, as it was believed to disrupt the supply chain and raise car prices. Although Tesla, Inc.'s electric cars are mainly produced in the United States, its key components still rely heavily on imports. Tesla, Inc. has not yet responded to media requests for comment on this issue.
Musk steps down as "DOGE" advisor, but reforms will continue
This press conference not only discussed automotive manufacturing issues, but also marked the end of Elon Musk's term as a special advisor in the Trump administration. According to regulations, Musk's longest service time as a "special government employee" is 130 days, and his current term has expired.
Nevertheless, Trump emphasized that Musk "hasn't really left," and will "continue to be involved in White House affairs back and forth." He described Musk's work on DOGE as "dedicated as if it were his own child."
Although DOGE is not a formal government department, its goal is to significantly reduce government spending, save taxpayer funds, and work towards reducing the U.S. national debt, which is currently at a staggering $36 trillion. Musk's leading reforms have sparked significant controversy, including massive layoffs of federal agency personnel and the closure of most of the USAID-led foreign aid projects. These actions have also led to protests and boycotts of Tesla, Inc. globally, resulting in the company's sales hitting a low point in years.
Despite this, Trump highly praised Musk's "selfless dedication" in government reform at the press conference, and said that DOGE has changed the mindset of federal agencies, effectively combating waste and fraud. According to DOGE's official website data, as of May 29th, the organization claimed to have saved $175 billion for the federal government. But a BBC investigation at the end of April found that only $61.5 billion had clear evidence, and the actual verifiable savings were only around $32.5 billion.
Musk himself also stated that even though he is stepping down, DOGE will continue to "relentlessly pursue the goal of cutting $1 trillion in spending."
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