Donald Trump’s Tariffs Could Backfire on Elon Musk and Tesla: Report [Video]

While Elon Musk has emerged as one of President Donald Trump‘s most loyal supporters—backing his policies and contributing over $300 million to his reelection campaign—the tech mogul’s companies are now fearful of the unintended consequences of the administration’s aggressive trade measures.

Tesla, Musk’s electric vehicle company, has reportedly warned that the recent tariffs could escalate production costs and expose the automaker to retaliatory actions from international markets.

Why It Matters

Trump campaigned heavily on the economy, emphasizing his plans to lower costs and revitalize U.S. manufacturing jobs. A key part of his strategy has been using tariffs to pressure trade partners, including Canada, Mexico, China and the European Union.

This week, Trump doubled down on his approach, standing firm on a 25 percent tariff on steel and aluminum imports from Canada and Mexico despite growing backlash. In response, Canada has threatened retaliatory tariffs, potentially targeting American-made electric vehicles, including Teslas.

What To Know

According …