Wait, isn't this is exactly how custom taxes work? Say the EU charges a 10% tax on all imported passenger cars (it does, and 25% on pickups and other trucks). Now, if Tesla sells cars to the EU that were made in the USA, wouldn't it trigger that import tax?

Now, say Tesla builds a factory inside the EU and makes cars there (as it plans to do). When sold in the EU, those cars wouldn't be charged an import tax because they're not being imported.

Right? What am I missing?