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Trump delays Mexico tariffs for one month amidst border agreement
U.S. President Donald Trump has come to an agreement with Mexico to delay tariffs, stalling potential price increases that are expected to hit Tesla and other automakers if implemented.
The Trump administration announced over the weekend that it would enact 25-percent tariffs against products coming from Canada and Mexico, set to go into effect on Tuesday. On Monday, however, Trump and Mexico President Claudia Sheinbaum came to an agreement to delay the tariffs for one month, so long as the Mexican government agrees to send 10,000 National Guard members to the border to prevent further drug trafficking (via Reuters).
“I just spoke with President Claudia Sheinbaum of Mexico,” Trump wrote in a Truth Social post on Monday. “It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country.”
In the post, Trump also said that the administration plans to host negotiations led by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent and Secretary of Commerce Howard Lutnick, along with high-ranking representatives from Mexico.
The agreement comes as the tariffs are widely expected to increase prices across the auto industry and others, as many U.S. assembled vehicles get a lot of parts from Canada, Mexico and China. In addition to tariffs against Canada and Mexico, Trump has also said the administration is planning a 10-percent tariff on Chinese imports.
READ MORE ON GLOBAL TARIFFS: Tesla joins group of automakers suing EU for EV tariffs from China-built cars
How would tariffs affect Tesla and other auto companies?
According to a report from Bloomberg, some vehicles could face price increases of up to $3,000 in the U.S. due to the tariffs, while several suppliers and auto manufacturers could also stand to face layoffs in certain areas of Canada and Mexico.
The tariffs are likely to affect the pricing of Tesla’s vehicles to a lesser extent than those of many companies, given that most of the company’s parts are made in the U.S. However, like many automakers that have final assembly in the U.S., Tesla also gets some components from other countries, so some kind of price increases are fairly widely expected.
In a filing with the National Highway Traffic Safety Administration (NHTSA) in October, Tesla reported that around 20 to 25 percent of its electric vehicle (EV) parts come from Mexico, while its vehicles have more U.S. and Canadian parts than most other automakers with around 60 to 75 percent coming from one of the two countries.
Tesla has also been planning to establish a factory in Mexico, already having invested around $100 million in the state of Nuevo Leon. The deal has largely remained in limbo for the past several months, and CEO Elon Musk said last year that the company would need to see how “things played out politically” with the election before proceeding with construction of Giga Mexico, in order to determine what level of tariffs Trump might establish.
The Trump administration is planning to meet with Canadian Prime Minister Justin Trudeau on Monday afternoon, after the leader said Canada would enact a 25-percent counter-tariff. The U.S. President has also signaled plans to target the 27 countries in the European Union (EU) with similar tariffs. He did not disclose when the government would aim to launch the European tariffs.
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U.S. legislators warn Mexico’s President of Chinese vehicle security threats
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The Tesla Semi is entering a new Pilot Program with Paper Transport, LLC (PTI), a Wisconsin-based transportation provider. The company will test the Semi’s Long Range configuration through “dedicated operations within the Chicago market.”
Chicago presents an interesting challenge for the Semi, as it will be a colder-weather climate that will test the Semi’s ability to operate in lower temperatures and in potentially large accumulations of snow. This is something Tesla has been testing with the Semi in Alaska and even in Northern California during the colder months, but Chicago will present a truly tough midwestern winter.
Tesla Semi spotted on journey home after winter performance testing
PTI says it is using the Semi to evaluate its strategy of reducing transportation emissions while maintaining performance, reliability, and cost efficiency. These are major arguments for the Semi being introduced into new fleets.
CEO of PTI Tyler Ellison said:
“PTI has been a leader in sustainable transportation solutions for over 15 years. We take a consultative approach to helping customers identify and implement the right transportation solution for their network. Our partnership with Tesla expands our portfolio alongside renewable natural gas and intermodal, giving customers more ways to reduce Scope 3 emissions without compromising service or economics.”
PTI is far from the first company to adopt the Semi within a fleet, as Tesla entered strategic agreements with PepsiCo. and its subsidiary Frito-Lay for a Pilot Program that extended throughout the California region.
Tesla has let companies like those utilize the Semi to determine whether it would be suitable for their operations. Additionally, Tesla gets valuable information regarding the Semi’s performance, knowing what to improve and what is ideal for companies that will utilize the all-electric truck for regional and nationwide logistics.
PTI plans to utilize the Long Range configuration, which is priced at $290,000 and features a range of approximately 500 miles, a three-motor powertrain, up to 800 kW of drive power, and consumption of just 1.7 kWh per mile.
Tesla Semi pricing revealed after company uncovers trim levels
VP of Maintenance at PTI, Bryan Ellen, added:
“We are excited to partner with Tesla, leveraging their ever-evolving technology. We are bullish in our estimation of the parallels available between our dedicated model and the efficiency of their fully electric Class 8 tractor. We anticipate a growing synergy between our businesses as we work to facilitate this sustainable solution for our customers.”
PTI has logged more than 87 million miles using sources like compressed and renewable gas, but now is looking to take it a step further with fully electric operations.
Tesla revealed on Monday that it is building a new autonomous vehicle at Gigafactory Texas, its plant just outside of the City of Austin. This particular vehicle will be geared toward those who are in need of a wheelchair-accessible car that would require no human driver for operation.
According to a new report from Wired, Tesla’s Senior Policy Advisor, India Herdman, told members of the Washington D.C. City Council on Monday:
“We are in development for a purpose-built, wheelchair-accessible autonomous vehicle. We know that paratransit can be very difficult, and people who are confined to wheelchairs permanently should still be able to move around freely, so that is an active product being built by Tesla in Texas.”
This builds upon what CEO Elon Musk said last year on X, which confirmed the company was working on accessible rides within its Robotaxi platform, which currently is confined to the Model Y.
Absolutely
— Elon Musk (@elonmusk) September 19, 2025
Tesla is also developing the Cybercab, which started employee rides last week. However, this vehicle is not necessarily geared toward wheelchair accessibility.
That leaves a major gap in the autonomous ride-sharing program that Tesla is attempting to build; the company has been pretty clear that it does not want to complicate its manufacturing lines by bringing in a wide array of body styles.
However, it seems necessary to have something larger that could help transport people to appointments when they cannot drive. For wheelchair accessibility, the Robovan, which was unveiled at the “We, Robot” event in October 2024, seems to be the most ideal solution:
Herdman did not indicate whether she was referring to the Robovan or if Tesla is building yet another body style that is geared toward full autonomy but also caters to the handicapped.
Tesla might need to develop something specifically for the handicapped in order to align with the Americans with Disabilities Act, which prevents discrimination against people with disabilities in transportation services. Uber was hit with a lawsuit late last year for “refusing to reasonably modify its policies, practices, or procedures where necessary to avoid discriminating against riders with disabilities.”
Tesla would obviously like to avoid this.
It will be interesting to see what Tesla will do with this project, and whether it will introduce something new to the market or just continue with the Robovan.
Tesla weirdly confirmed that its steering wheel-less and pedal-less Cybercab vehicle is now in the process of giving employees rides, a huge milestone for the vehicle program.
But the entire thing was super strange. On Friday, Tesla released a video stating that there was “Cool news from Giga Texas” and that employees were now taking rides in Cybercabs that have no manual controls. The units seen on public roads are engineering vehicles that have manual controls inside, a necessity as Tesla moved through the testing phase.
However, Tesla removed the video and reposted it shortly after with a more vague title. It seems like the employee rides are still going, but the video was adjusted slightly. The initial upload showed employees doing things like watching movies and adjusting the climate, but these snippets were removed in the second upload.
Cool news from Giga Texas pic.twitter.com/gvbG456Tzw
— Tesla Robotaxi (@robotaxi) July 11, 2026
Both images below were uploaded with the first video, but were removed after Tesla re-uploaded the announcement. These are not available in the second upload
Credit: Tesla
Credit: Tesla
Nevertheless, the announcement from Tesla is that the Cybercab is operating with employees inside who can control the vehicle’s audio, video, climate, and destination settings through their smartphone app.
Tesla has already been testing Cybercab engineering units, but last month, it was able to self-certify for SAE Level 4, which would enable unsupervised self-driving in Texas. The company is moving toward that, and the plans have always been to launch Cybercab rides this year.
The Cybercab is potentially looked at as the next generation of Tesla’s mobility leg. For the past 15 years, the company has been known as somewhat of an automaker, among many other things. However, these passenger vehicles that Tesla has manufactured are now moving into a new realm, as they will eventually drive themselves with no supervision thanks to the Full Self-Driving suite.
The Cybercab is just the next step of that: a true vehicle developed for the sole purpose of ride-hailing. It has no human controls, it has only two seats, and it will get passengers from Point A to Point B with no awkward driver, no need for manual inputs, and with no stress.
Tesla is moving forward with other developments related to the Cybercab project as well. However, the big announcement will come when Tesla finally announces that it is launching Cybercab rides to the general public, something that it plans to launch either late this year or early 2027.
Tesla Semi enters new Pilot Program with interesting challenge
Tesla is building a wheelchair-accessible Robotaxi
