Interesting Graph Of Which Companies Will Be Most Affected By The New Tariffs: A worrying concern for Rivian owners?

Rivian Blue

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The graph above shows the % of vehicles that each automaker sells that are made in the US. The lower the percentage the more they are affected. The graph really does very little to show the real effect. Rivian will be affected because some of their parts and some materials are not made in the US. Those that are made in the US, well the US price goes up because of the tariffs (and that's arguably the reason for tariffs, it raises the price of US made stuff).

Further, it might turn out that if everything has a tariff, manufacturing in the US might not be the cheapest. VW might make everything in the EU and pay a flat 25% tariffs on the vehicle while Ford might pay a 25% tariff on steel, make the engine in the US, then ship it to Canada, pay another 25% tariff, then ship it back to the US and pay another 25% tariffs. So the integrated north American production strategy comes out more expensive than the fully foreign strategy.

It's one of the many reasons tariffs are a bad idea, in that example, some companies might think it would be much worth it to shut down the US engine factory and move it to Canada because that's cheaper than moving the vehicle factory. Would love to see how this all plays put in the future.
 

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