Rivian’s founder and CEO, RJ Scaringe, recently addressed the issue of U.S. tariffs implemented during President Donald Trump’s administration and how they affect the electric vehicle (EV) manufacturer. His discussion took place on the program “The Claman Countdown,” where he explored the challenges these tariffs pose to the pricing and availability of vehicles in the United States.
Amid rising tariffs on imported passenger vehicles, light trucks, and key auto parts, Scaringe mentioned that Rivian is navigating these developments carefully. The tariffs are part of several levied on imports under Trump’s policies, including those on steel, aluminum, and reciprocal tariffs.
In the discussion, Scaringe explained that Rivian’s electric vehicles, such as the second-generation R1S, are produced at their facility in Normal, Illinois. The company has focused on developing its production footprint and supply chain in the U.S., where all related technology is also developed.
The complexity of Rivian’s supply chain, according to Scaringe, involves numerous suppliers providing various parts, ranging from headlights to structural components. While some parts come from abroad, the company maintains a U.S.-centric supply chain.
Scaringe noted that Rivian is not completely insulated from the tariffs but highlighted its efforts to localize big pieces of manufacturing, including motors and batteries. However, he acknowledged that various components are sourced from a global supply chain, with contributions from both domestic and international suppliers.
During the interview, it was also pointed out that Rivian is expanding its plant in Illinois. Scaringe confirmed the company has had discussions with the White House concerning the tariffs, which impact various components from other countries and involve trade restrictions related to rare earth metals from China.
With China imposing new restrictions on certain rare earth metals, Scaringe elaborated that permanent magnet motors in electric vehicles often rely on these materials, which predominantly undergo processing in China. Thus, these restrictions present challenges for the EV industry.
Further, Scaringe addressed how the electric vehicle market, which accounted for 8.1% of U.S. vehicle sales in 2024 according to Cox Automotive, could grow. He emphasized the importance of providing consumers with more choices and mentioned that expanding EV options below $50,000 could enhance this share. Rivian currently produces models such as the R1S SUV, R1T pickup truck, and commercial electric vans, with plans for future models like the R2 and R3.
The company’s stock, listed as RIVN on financial exchanges, recently experienced a slight decline.