Part 6/7:
The automotive industry is closely intertwined with the supply chains that cross U.S., Canadian, and Mexican borders. It is not uncommon for a single vehicle's components to pass through these borders multiple times before assembly. Therefore, imposing tariffs on Canadian and Mexican imports could severely disrupt operations for manufacturers like Tesla.
Interestingly, despite Elon Musk being one of Trump's prominent allies and even having held a role in the government designed to improve governmental efficiency, the new trade threats have not benefitted the billionaire. Although Trump has since delayed the proposed tariffs on Canada and Mexico while maintaining them for China, the uncertainty in the market persists, and Tesla's shares have not fully bounced back.