88 Comments Tesla’s stock (TSLA) surged today after President Trump announced changes to his tariffs, which were put in place hours ago. However, the move is irrational since Trump significantly increased tariffs on China, which will destroy Tesla’s energy business. Trump’s “reciprocal tariffs” announced last week came into effect at midnight. The President implemented a 10% base tariff on all imports and then added up to 49% “reciprocal tariffs” on countries. The term “reciprocal” is not accurate since he based the tariffs on the US’ trade deficit with each country rather than the actual tariffs they place on the US. Advertisement - scroll for more content The announcement sent the stock markets crashing last week and experts were highly critical of Trump because countries can’t negotiate to remove tariffs that don’t exist. Today, only hours after the tariffs were put in place, Trump announced that he is pausing the “reciprocal tariffs” for 90 days. However, he is keeping the new 10% tariffs on all imports across the board, and he announced that he is increasing the previously announced 104% tariffs on China to 125%. The move sent the stock markets back up. Tesla also surges on the news Tesla’s stock also surged on the news, by as much as 20% at the time of writing, but it’s not clear why. The company wasn’t greatly affected by the “reciprocal tariffs” that were just paused, but the tariffs on China that were increased have a massive impact on Tesla.