Tesla urges USTR to weigh tariffs against Vietnam supply needs

What if Vietnam tariffs increase from 12.5% to 25%?

Simulate a doubling of import tariffs on Vietnamese-sourced components used in US automotive and electronics manufacturing. Model the cost impact on component pricing, evaluate alternative sourcing options (nearshoring, domestic alternatives, other Asian suppliers), and calculate the threshold at which companies would pursue supply chain restructuring or price increases.

What if domestic component capacity takes 18-24 months to scale?

Model the lead time and cost impact if US manufacturers need to wait 18 to 24 months for domestic alternatives to mature. Simulate tariff costs accruing over time, supplier constraints during transition, inventory buffer strategies, and the financial exposure during the gap period when tariffs remain high but domestic supply is insufficient.

What if companies shift sourcing to alternative Southeast Asian countries?

Model a supply chain reconfiguration scenario where companies move Vietnamese-sourced components to suppliers in Thailand, Indonesia, or Malaysia to avoid tariffs. Simulate transition costs, new supplier qualification timelines, potential tariff exposure in alternative countries, and the capacity constraints of alternative suppliers absorbing diverted volume.