Rivian's CEO R.J. Scaringe warns that President Trump's proposed 25% tariffs on imports from Mexico and Canada could have more detrimental impacts on the auto industry than expected EV tax credits. Scaringe believes these tariffs could significantly inflate costs for consumers, jeopardizing the existing supply chains that have been heavily invested in across North America. He notes that while Rivian has a substantial portion of its manufacturing done in the U.S., the broader auto industry will struggle under higher tariffs that could disrupt established production networks.
It has, in some ways, bigger implications, far bigger, than what happens with the IRA tax credits.
The inflation environment that that's going to create is, just from an economic standpoint, we believe could be really damaging.
Many, many, many hundreds of billions of dollars have been invested in Mexico in production capacity for supply chains that supply to all of us.
It's not as if it's like one supplier.
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