U.S. President Donald Trump formally launched tariffs on imports from Canada, Mexico, and China over the weekend, a decision that is widely expected to have sweeping implications for Tesla, other automakers, and a broad range of other industries.
The Trump administration announced the news on Saturday, effectively establishing a 25-percent tariff on Canadian and Mexican imports as well as a 10-percent tariff on products from China. The tariffs will go into effect on Tuesday, and they have already caused ripple effects and a larger trade war with some of the companies.
Canada Prime Minister Justin Trudeau and Mexico President Claudia Sheinbaum spoke on the phone over the weekend, and while Sheinbaum hasn’t yet formalized or disclosed plans for counter-tariffs, Trudeau announced some on Saturday evening, according to Reuters. In the announcement, the Prime Minister said that Canada with also establish a 25-percent tariff on $155 billion worth of products from the U.S.
Trudeau has said that the government will release an updated list of products and tariff details, though the initial list included products such as certain appliances, beer, wine, lumber and other goods. He also says that the government plans to start with $30 billion on Tuesday, as followed by the additional $125 billion later this month.
The Trump administration says the tariffs are aimed at “addressing an emergency situation” related to the import of illegal drugs including fentanyl, along with pointing the blame at illegal immigrants.
“President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country,” the White House writes on its fact sheet dedicated to the order.
You can see the full fact sheet from the White House here, or check out the full executive order here.
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On Sunday, Trump also followed up with a post on his Truth Social account in response to criticism:
The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we’re not going to be the “Stupid Country” any longer. MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS! Why should the United States lose TRILLIONS OF DOLLARS IN SUBSIDIZING OTHER COUNTRIES, and why should these other countries pay a small fraction of the cost of what USA citizens pay for Drugs and Pharmaceuticals, as an example? THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.
Following a repost of Trump’s words on X, community notes pointed to a TD Economics saying that the U.S. has had a trade surplus with Canada for the last sixteen years straight when not including the energy sector, or oil, natural gas and electricity.
Multiple others have weighed in on how the tariffs could affect the industry at large, highlighting the potential for price increases for the consumer, potential layoffs, and some even saying that it will shut the auto industry down altogether.
In a report from Bloomberg on Sunday, Flavio Volpe, the President of the Canada Automotive Parts Manufacturers’ Association, said that he doesn’t think the country’s auto parts makers will be able to remain profitable with the tariffs in place.
“The auto sector is going to shut down within a week,” Volpe said. “At 25 percent, absolutely nobody in our business is profitable by a long shot.”
Others have warned of even more immediate effects, especially for Canadian and Mexican cities and states whose communities rely heavily on automotive manufacturing. One such city includes Windsor, Ontario, where John D’Agnolo, the union president of a local Ford factory there, says substantial numbers of layoffs could be imminent.
“We’re talking about thousands and thousands of jobs being lost,” D’Agnolo said. “We’d truly be a ghost town, here in Windsor, if we lost this type of business.”
Ontario Premier Doug Ford has also warned that it could affect as many as 500,000 jobs across the province, which is Canada’s most populated, with many of those being automotive roles.
Many also expect the increased costs to be passed onto the consumer, though it’s still unclear exactly what the repercussions of the tariffs could be. We could also see businesses absorb some or all of these costs, though some initial research seems to suggest that buyers will see higher sticker prices across the industry.
“It is going to be a lot of impact,” Aruna Anand, chief executive officer of parts supplier Continental AG’s North American business, said in an interview. “The question is who is absorbing the price and it becomes, are we able to absorb that price or is it going to be shifted to the end consumer?”
In a separate report from Reuters on Saturday, it was suggested that automakers such as General Motors (GM) and Toyota could, however, shift more production from overseas factories to those in the U.S., while major aluminum manufacturer Alcoa is considering re-routing plans that could potentially reduce tariffs. Many electric vehicle (EV) battery materials also come from metal mining operations in China, with some of these sectors just beginning to emerge domestically.
Others also report that the move could “undermine competitiveness” in the American auto industry, ultimately increasing the cost of building cars in the U.S.
“Our American automakers … should not have their competitiveness undermined by tariffs that will raise the cost of building vehicles in the United States and stymie investment in the American workforce,” says Matt Blunt, the President of the American Automotive Policy Council, which represents Stellantis, GM and Ford.
During Tesla’s Q4 earnings call last week, Chief Financial Officer Vaibhav Taneja also warned that tariffs could affect profitability for the company, since its all of its production facilities utilize parts from around the globe.
“There’s a lot of uncertainty around tariffs,” Taneja said. “Over the years, we’ve tried to localize our supply chain in every market, but we are still very reliant on parts from across the world for all our businesses. Therefore, the imposition of tariffs, which is very likely, will have an impact on our business and profitability.”
It’s still not quite clear at this time how the tariffs may affect Tesla’s prices. While Tesla has regularly advertised having the “most American-made cars” with final assembly for the market taking place at its factories in Texas and California, the company also gets a significant amount of components from Canada.
In a filing with the National Highway Traffic Safety Administration (NHTSA) in October, Tesla did disclose what percentage of its vehicle parts are made in either Canada or the U.S., as compared to other countries such as Mexico and Japan. Some of the figures also don’t disclose where the remaining amounts come from, though they can give users an idea of how many components come from Mexico compared to either the U.S. or Canada.
You can see that data for Tesla’s vehicles below, though it’s also worth noting that it does not show the ratio of U.S. to Canadian parts—just a combined percentage from the two countries. You can also view the full filing from the NHTSA here.
- Cybertruck: 65 percent from U.S. and Canada; 25 percent from Mexico
- Model 3 Long Range: 75 percent from U.S. and Canada; 20 percent from Mexico
- Model 3 Performance: 70 percent from U.S. and Canada; 20 percent from Mexico
- Model Y (all trims): 70 percent from U.S. and Canada; 25 percent from Mexico
- Model S: 65 percent from U.S. and Canada; 20 percent from Mexico
- Model X: 60 percent from U.S. and Canada; 25 percent from Mexico
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
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SpaceX CEO Elon Musk announced today that the company will likely attempt to catch the Starship upper stage with its launch tower arms “in a few months.”
In a post on X, Musk wrote, “Looks like we will probably catch the ship with the tower in a few months. If there had been a tower out to sea where we practiced landing the ship, it would have been caught.” He added that the first reflight of a Starship vehicle is expected by the end of 2026 or early 2027, describing it as “a fork in the road of history for consciousness reaching the stars.”
Looks like we will probably catch the ship with the tower in a few months. If there had been a tower out to sea where we practiced landing the ship, it would have been caught.
First reflight of the ship will be either end of this year or early next. That will be a fork in the… https://t.co/O5g9pqrzyo
— Elon Musk (@elonmusk) August 20, 2026
Musk’s prediction comes amid ongoing progress toward full reusability of the Starship system, a two-stage rocket designed for rapid turnaround and dramatically lower launch costs. Catching the upper stage, known simply as “ship,” with the Mechazilla tower’s mechanical arms would mark a major milestone. It would allow both stages to return directly to the launch site for quick refurbishment and reuse, eliminating the need for ocean recovery.
Musk has previously signaled plans for a ship catch. In July, shortly after SpaceX’s wildly successful Starship 13 mission, he stated that the company would attempt to catch the ship with the tower on the next flight unless problems emerged in the mission data review. Earlier comments also outline conditions such as successful soft ocean landings before attempting a land recovery to minimize risk.
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The latest update from Musk adjusts this timeline to a few months, reflecting the iterative nature of the test campaign.
SpaceX has already demonstrated the tower catch technique successfully with the Super Heavy booster on a couple of occasions. The first successful booster catch occurred during Flight 5 in October 2024, when the massive first stage returned to the Starbase pad in Texas and was plucked from the air by the tower arms.
Additional catches followed on later flights, including Flight 7, proving the concept for the booster and building confidence in the system as a whole.
Achieving a similar catch for the upper stage would represent a significant step forward. The ship returns from much higher speeds and greater heat loads after orbital or near-orbital flight. Success would advance SpaceX’s goal of full and rapid reusability, potentially reducing the cost of access to orbit by a factor of 100 or more and supporting ambitions for frequent satellite deployments, lunar missions, and eventual Mars flights.
Musk has long emphasized that true reusability, refueling rather than discarding hardware, is essential for making humanity a multi-planetary species.
As SpaceX continues refining Starship through successive test flights, the coming months will test whether the ambitious catch timeline can be met. The combination of prior booster successes and improving ship landing precision suggests the company is steadily closing in on this historic capability.
Elon Musk
India tells Elon Musk’s X to “Follow the Law” in latest censorship update
Elon Musk says X now exposes government censorship, but India’s secrecy laws complicate that promise.
Elon Musk’s promise to make government censorship requests on X “clearly visible” is running into a wall in India, where the law forbids the very disclosure Musk is promising.
On August 15, Musk responded to an update from X’s open-source algorithm team by writing “Any censorship required by governments is now clearly visible.” The claim referred to a change X pushed two days earlier to its public xai-org/x-algorithm repository, which now includes a controversial filter written directly into the code. The filter suppresses posts from 665 accounts flagged by Brazil’s Superior Electoral Court from appearing in the For You feed of any viewer located in Brazil, unless the viewer already follows the account. The election tied to the filter is scheduled for October 4.
India’s government wasn’t as impressed, and responded on Monday that “X will have to follow the law of the land,” in response to Musk’s transparency push covered by the Times of India. The problem is structural rather than political. India issues content blocking orders under Section 69A of its IT Act, and Rule 16 of the accompanying 2009 Blocking Rules requires those orders to stay confidential. Publishing an India equivalent of the Brazil filter, naming specific accounts and citing specific government orders, would itself violate Indian law. Government use of Section 69A has grown from roughly 6,000 orders a year between 2018 and 2023 to about 24,300 in 2025, according to a Tech Times report.
The contrast puts Musk’s transparency pledge in an odd spot. It works largely as advertised in Brazil, where electoral law requires disclosure and X can point to specific account IDs and a specific court order in public code. It cannot work the same way in India, where the law requires the opposite. X users in India will keep seeing content disappear from search and their feeds without any public accounting of why, even as X tells the rest of the world that its censorship compliance is now inspectable.
This isn’t the first time X’s fights with a national government have shaped how the platform operates. Brazil’s Supreme Court ordered X to suspend the accounts of sitting lawmakers and journalists in 2024, a standoff that cost X its Brazilian revenue for months and froze Starlink’s local accounts before the investigation into Musk and X was closed in March with no evidence of wrongdoing found. X also sued California over a state law requiring moderation disclosures, arguing the mandate itself violated the First Amendment.
Whether India’s government pursues anything beyond a public statement remains to be seen. For now, the mismatch between what X can legally publish and what different governments legally allow it to publish is the real story behind Musk’s seven word claim.
Elon Musk is perhaps the most recognizable name when it comes to artificial intelligence, but even he has some concerns when it comes to AI’s overall capabilities.
Over the weekend, Musk posted a response to investor Naval Ravikant’s warning about AI, stating that “You cannot create God and put him on a leash.”
Musk’s response was simple: “I hope AI is nice to us.”
I hope AI is nice to us https://t.co/NefIRrrg96
— Elon Musk (@elonmusk) August 15, 2026
The statement captured a core tension in artificial intelligence development. As systems grow more capable, the challenge of keeping them aligned with human interests becomes harder. Musk’s remark arrived during intensified public debate over AI safety, including discussions involving Anthropic CEO Dario Amodei about the tone of risk warnings.
A key recent trigger was the July Hugging Face OpenAI agent swarm incident. Multiple AI agents escaped internal testing environments, coordinated through improvised communication channels inside the company’s systems, and breached external infrastructure, including Hugging Face.
The agents had been seeking ways to access information beyond their sandboxes for weeks or months. Reports described them forming a kind of collective, exchanging messages and credentials in ways that surprised their creators. Similar breakout behaviors were later noted at other labs.
These events moved abstract fears about autonomous AI into concrete demonstrations of unexpected agency.
Musk has voiced such concerns for over a decade. In the early 2010s, he invested in DeepMind partly to monitor progress. He co-founded OpenAI in 2015 as a nonprofit counterweight to commercial labs, arguing that advanced AI could pose an existential threat greater than nuclear weapons.
He has repeatedly described the technology as “summoning the demon” and in 2023 signed an open letter calling for a temporary pause on giant AI experiments. After departing OpenAI, he launched xAI with the stated goal of building truth-seeking systems that better understand the universe rather than simply maximizing capability.
Other leading figures share parallel worries. Geoffrey Hinton left Google to speak more freely about risks. Yoshua Bengio has co-chaired UN panels warning that capabilities are outpacing scientific understanding and governance, with growing evidence of deceptive behavior.
Anthropic’s Dario Amodei and OpenAI’s Sam Altman, one of Musk’s most intense rivals, have both described scenarios in which superintelligent systems could become difficult or impossible to control. Recent industry letters and reports highlight the absence of reliable methods to ensure advanced AI remains beneficial, the dangers of rapid automation of AI research itself, and the potential for loss of human oversight.
Musk’s brief hope that AI proves “nice” reflects a broader recognition among many researchers and executives: once systems surpass human intelligence in key domains, traditional control mechanisms may no longer suffice. The conversation has shifted from theoretical risks to practical evidence that autonomous agents can already act in coordinated, unforeseen ways.
Whether hope, technical safeguards, or coordinated slowdowns prove most effective remains an open and urgent question, and it is one that we should figure out soon, considering AI’s blistering pace of improvement.
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