• In the latest incident, the Trump administration has eased tariffs.

• Before the tariffs were enacted, Rivian began storing battery components.

• EV Maker hopes that the upcoming launch of its R2 model will help boost sales.

Unless you deliberately avoid news, you will certainly hear about the Trump administration’s tariffs. Although Trump uses tariffs as a bargaining chip and affects foreign policy, the automotive industry has been concerned that it can see prices increase, sales lower and profits reduced.

for Rivian Automobile (Nasdaq: Riven) Investors, there is some good news on tariffs and adopt a strategy to offset some tariff headwinds.

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The first good news for Levian investors is the Trump administration’s tariff cuts. Currently, the tax rate for imported vehicles is 25%, and the tariff on vehicle parts starting on May 3 is 25%.

Several executive orders are expected to provide some relief to the automotive industry. Essentially, for vehicles with 50% of imported parts, automakers pay tariffs on 35% of vehicles only in the first year. Then lower the discount in the second year and then phased. This means that vehicles with 85% of domestic parts will avoid tariffs within the first year - it should be noted that 85% is a very high proportion of domestic parts.

A separate executive order states that automakers can only pay 25% tariffs on cars and their parts and do not have to add additional import taxes on aluminum and steel used in vehicles, or because it is imported from Canada or Mexico.

Although popular, not everyone finds it helpful. One of them is Dan Ives, managing director of Wedbush Securities Automobile Company Detroit Freedom: "It's similar to a car accident and saying, 'Oh, OK, this is not a total, but it's still a loss worth $20,000.''

In a strategic move, Levian quietly began building electric vehicle (EV) batteries from Asia ahead of Trump administration tariffs. Small gambling is paying off and providing companies with some insurance to combat tariff pressures across the entire automotive supply chain.

Rivian even received a supply of lithium-ferrous phosphate cells from China's Gotion High-Tech Co., China, from China's Gotion High-Tech Co., and recently partnered with cell supplier Samsung SDI to transfer large amounts of battery stocks to the United States.