US President Donald Trump’s latest tariffs on Mexico, Canada, and China could have significant implications for his close ally Elon Musk. The move, which includes tariffs on US trade with Canada in retaliation, may affect the supply chains of Musk’s technology companies, including SpaceX and Tesla.
The tariffs, announced by Trump, would impose a 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on imports from China. In response, Canadian Prime Minister Justin Trudeau has threatened to introduce retaliatory tariffs on over $100 billion in US goods. This could lead to increased costs for supply lines involving Canadian imports.
Tesla, led by Musk, relies heavily on trade with China for battery parts. The company’s Chief Financial Officer Vaibhav Taneja warned that any tariffs would have an impact on the business and profitability. SpaceX, which is responsible for several major contracts with NASA, may also be affected if tariffs are placed on European imports.
However, Musk’s other companies, such as digital services and The Boring Company, are less likely to be impacted by the tariffs.
The full impact of the retaliation from Mexico and China has not yet been made clear, but Trump has indicated that future tariffs on the EU and UK could be on the way. As Musk’s closest ally and president of the Department of Government Efficiency, any damage to Tesla and SpaceX could test their friendship.
While the tariffs may have some negative effects, they also present an opportunity for Tesla to maintain its dominance in the US electric vehicle market without competition from Chinese imports.
Source: https://www.newsweek.com/trump-tariffs-elon-musk-companies-2025130