Date: 2025-08-22 Page is: DBtxt003.php txt00028369
COMPANIES
TESLA
Garage Heads: Canada WIPES THE FLOOR With Tesla & Elon Musk LOSES IT
TESLA
Garage Heads: Canada WIPES THE FLOOR With Tesla & Elon Musk LOSES IT
Original article: https://www.youtube.com/watch?v=WMiQMWpMTGY
Peter Burgess COMMENTARY
Peter Burgess
- 0:01
- is looking to fundamentally restructure the international trading system and just yesterday he announced a
- pause on what is called a global set of reciprocal tariffs for all countries but
- China the world just changed and Washington was caught asleep at the wheel canada just fired the first shot
- in a full-scale economic war cutting off the minerals Tesla and the entire US auto industry needs to survive in a
- matter of hours supply chains froze factories stalled and panic swept Wall Street meanwhile China is moving in
- Europe is pulling back and America is being boxed out of the global auto game one brutal trade deal at a time is this
- how the United States loses its factories its allies and its last grip on global power what's happening it
- started with a signature and a smirk president Donald Trump launched one of his most aggressive trade moves yet a
- 25% tariff on Canadian auto exports to Washington it was economic muscle to Ottawa it was war but Canada didn't
- 1:00
- blink new Prime Minister Mark Carney struck back with precision targeting electric vehicles battery minerals and
- crossber parts it wasn't just retaliation it was strategy carney a global finance veteran knew how to cut
- deep his tariffs hit swing states factory towns and the voters Trump promised to protect the message was
- sharp canada wouldn't be pushed around within days trade routes clogged ports slowed supply chains cracked the world's
- most integrated auto partnership began to unravel american automakers scrambled what was supposed to be a bold US tariff
- became an industrial crisis and Canada for the first time in modern history wasn't following it was leading and this
- time it wasn't backing down as the supply chain buckled and automakers panicked another player stepped onto the
- stage not to negotiate but to replace America entirely make sure you're subscribed because what happens next
- will blindside Washington tesla's supply chain collapses overnight the most critical blow came in the form of
- restricted access to battery minerals tesla sources a significant percentage of its nickel aluminum and lithium from
- 2:04
- Canadian suppliers materials that are not just important but irreplaceable in the short term with new tariffs driving
- up costs and slowing shipments Tesla was faced with a devastating dilemma pay more wait longer or halt production the
- impact was immediate factories slowed battery assembly lines in Nevada and California fell behind schedule delivery
- estimates stretched out by weeks then months for a company built on speed innovation and investor confidence the
- delay was catastrophic stock prices trembled as analysts sounded the alarm tesla once viewed as the untouchable
- champion of American electric vehicle manufacturing was now exposed investors began asking hard questions how could a
- single policy change from Canada destabilize a multi-billion dollar automaker the answer was simple
- dependence tesla had built its empire on a foundation that required cooperation canadian miners smelters and
- transporters were just as essential to Elon Musk's dream as his factories and software and Canada knew it in Ottawa
- 3:02
- the move was celebrated as a master stroke of strategic retaliation rather than simply punishing America broadly
- Prime Minister Carney had pinpointed a company that symbolized American innovation and pride and used it as
- leverage as prices surged Tesla was forced to make cuts new models were delayed some orders were cancelled
- outright musk remained defiant on social media but internally Tesla executives began scrambling for alternative sources
- knowing full well that even temporary disruptions could unravel years of progress and while Tesla burned the fire
- spread the dealership breakdown why American auto sales just died it wasn't just Tesla feeling the heat ford General
- Motors and Stalantis were hit just as hard if not harder by Canada's retaliation but their pain looked
- different it was not about high-tech batteries or futuristic supply chains it was about the dealership network from
- Texas to Michigan American auto dealerships began reporting delays partages and unexpected pricing hikes
- 4:01
- vehicles that were once on showroom floors within days were now taking weeks to arrive even basic service
- appointments began to back up as replacement parts became scarce the dealership network the backbone of
- American auto retail started to crack with each shipment delay from Canada the pressure mounted ford dealers couldn't
- get transmissions gm service centers ran out of diagnostic chips stalantis
- dealers found themselves with half stocked lots and explanation to give angry customers in small towns and
- suburbs across the country the crisis became visible consumers who had saved up for new trucks and SUVs found
- themselves waiting indefinitely meanwhile prices skyrocketed as supply dried up the average cost of a new car
- jumped by over 15% in just a matter of weeks pricing millions of Americans out of the market altogether worse still the
- used car market exploded vehicles that once depreciated yearbyear were now appreciating a 2-year-old truck was
- suddenly worth more than a new one simply because it was available the chaos was not just financial it was
- 5:05
- psychological consumers lost confidence dealers lost sales and for the first time in a generation Americans began
- asking a question few thought they would ask is buying Americans still worth it meanwhile in Ottawa the answer was clear
- the strategy was working the United States had underestimated Canada and now the new prime minister was about to
- deliver his most devastating move yet how Canada weaponized the border under Mark Carney's leadership Canada took an
- approach the US never expected rather than attacking directly Carney subtly disrupted the systems and norms that
- made American dominance possible he did not scream into microphones he pulled strings border inspections were
- intensified automotive parts were subject to new scrutiny small regulatory delays added up warehouses in Windsor
- Ontario held on to shipments longer ports in Vancouver adjusted schedules trucks waited and as the border slowed
- so did the American economy supply chains designed for speed began to buckle under the weight of bureaucracy
- 6:02
- it wasn't illegal it wasn't even technically hostile but it was effective carney coupled this strategy with a
- public diplomacy campaign that painted Canada not as a villain but as a victim standing up for itself in speeches
- across Europe and Asia he framed the dispute as a defense of rules-based trade against American bullying and the
- world listened suddenly Canada became a symbol of fair trade the US looked reckless emotional and shortsighted
- foreign investors took notice european car makers started rethinking their North American strategies asian battery
- suppliers explored new partnerships north of the border and perhaps most shockingly Canadian policies began to
- attract interest from US states desperate to escape the chaos governors from Michigan Ohio and Pennsylvania
- opened quiet back channels to Ottawa asking if exemptions or localized trade deals could be arranged in that moment
- Carney had not just retaliated he had redefined the balance of power what began as a routine tariff war had now
- 7:01
- become something far more dangerous it was no longer about parts and percentages it was about pride strategy
- and geopolitical alignment and as the first month of the trade standoff came to a close one thing was clear the
- United States had been outmaneuvered by its closest ally Trump's trade trap
- donald Trump was never known for subtlety and when Canada hit the US auto industry with strategic tariffs he hit
- back with twice the force with executive orders and rally stage bluster trump
- expanded tariffs across Canadian raw materials and slapped a new wave of restrictions on imported parts but he
- did not stop there he unveiled a sweeping made in America mandate designed to force US automakers to cut
- foreign reliance and shift their supply chains back home to Trump's base it sounded like a patriotic masterstroke
- but to economists and auto executives it was a nightmare wrapped in a flag american manufacturing was simply not
- prepared to absorb that kind of shift domestic supply chains were already stretched thin labor costs were rising
- 8:03
- and factories lacked the capacity to scale up quickly suddenly automakers found themselves caught in a costly
- transition with no off-ramp tariffs on Canadian aluminum nickel and lithium shot prices upward new compliance costs
- flooded in from the sourcing mandates assembly lines slowed procurement delays piled up and vehicles once destined for
- showroom floors were now stuck half finishedish in warehouses waiting on parts what Trump framed as a win for
- American jobs quickly turned into a corporate triage zone wall Street reacted swiftly stocks for Ford General
- Motors and Stalantis tumbled credit agencies began downgrading forecasts and as production slowed foreign competitors
- seized the opening selling cheaper fully built alternatives with fewer restrictions america's hold on its own
- market was slipping and fast instead of protecting the auto sector Trump had walked it into a trap and it was only a
- matter of time before the casualties began to mount as the pressure builds on corporate boardrooms and union leaders
- 9:04
- alike the chaos moves from policy papers to factory floors the factory shutdown
- spiral begins in Michigan the silence inside Ford's flat rock plant said it all conveyor belts halted doors locked
- workers sent home indefinitely it was not just Ford across Ohio Indiana Missouri and Illinois plant managers
- announced sweeping layoffs and indefinite shutdowns the ripple effect of Trump's tariffs had become a tidal
- wave ford was the first to blink facing skyrocketing costs for Canadians sourced
- battery materials they paused EV production in three major facilities general Motors quickly followed scaling
- back operations in Lordstown and Lancing citing unfavorable market conditions and supply chain disruptions stalantis once
- the silent giant issued pink slips to thousands in Belvadier warning that the plant's future was under review it was
- not just the major brands smaller contract manufacturers the ones who build parts like seats dashboards and
- 10:01
- wiring harnesses began to fold these firms depended on volume and volume was disappearing by the day a plan in Dayton
- laid off over 700 workers a supplier in Grand Rapids shut down completely the auto ecosystem was unraveling and with
- each announcement the media blitzed local headlines union leaders tried to organize responses but even they were
- paralyzed by the speed of the collapse trump's trade strategy had not just backfired it had triggered a chain
- reaction that no single executive or agency could stop in swing states that formed the spine of the American auto
- industry factory towns went dark cafes closed apartment vacancies soared pickup
- trucks with rusted tailgates and unpaid notes began to pile up in dealership lots the political consequences were on
- the horizon but first came the human cost and for workingclass families already living paycheck to paycheck the
- shutdowns were a death sentence from the factory floor to the showroom the next wave of damage hit the American consumer
- directly consumers pay the price by late spring car buyers across America were experiencing something they had not felt
- 11:05
- in years panic it started in Texas where Ford dealers began adding $5,000 to
- sticker prices overnight in California used EVs were selling for more than new ones in Florida luxury car lots were
- sitting empty waiting for inventory stuck in limbo the cause was clear with tariffs choking the flow of critical
- parts and factory closures slowing production automakers could not meet demand and when supply dries up prices
- explode the average price of a new vehicle in the US crossed $50,000 for
- the first time used car prices surged past $32,000 even basic maintenance costs
- skyrocketed oil changes that once cost 50 bucks now pushed past 100 replacement
- parts when available were delayed by months and marked up by triple digits consumers were forced into impossible
- decisions families put off buying new vehicles ride sharing apps saw record signups from people selling cars they
- 12:01
- could no longer afford auto repair shops began turning away customers due to part shortages it was not just about
- transportation these vehicles were lifelines for workers single parents rural families and small business owners
- and when the price of a car doubles so does the pressure on everything else inflation already a hot button issue now
- had a new poster child the American auto market in Washington officials scrambled for damage control but in middle America
- the damage was already done and in the places where Trump once drew massive crowds promising to bring the auto
- industry back the backlash was already brewing the MAGA backlash it started quietly a protest outside a shuttered
- plant in Bowling Green a viral video from a laid-off worker in Toledo a Facebook group of unemployed welders
- from Indiana asking a painful question what happened to America first then it went national fox News segments began
- airing interviews with Trump voters who now felt betrayed talk radio exploded with calls from factory workers many of
- 13:01
- whom had voted Republican their entire lives who now faced foreclosure missed payments and health insurance lapses
- swing states like Wisconsin and Pennsylvania once Trump strongholds became ground zero for workingclass rage
- a town hall in Lancing turned into a shouting match in rural Kentucky conservative pastors used Sunday sermons
- to question whether their communities had been sacrificed for political gain the backlash was not ideological it was
- survival these were people who had placed their faith in Trump's promises of reshoring jobs and reviving industry
- instead they saw their plants shut down their paychecks disappear and their futures grow dimmer trump responded the
- only way he knew how deflection he blamed Canada he blamed Elon Musk he blamed Democrats but the excuses were
- not enough for the first time in years his base was not just frustrated they were furious and that fury was beginning
- to translate into something far more dangerous than protest signs or angry tweets it was turning into political
- abandonment with the working class in revolt and the auto economy in freef fall the stage was set for a deeper
- 14:05
- collapse one that could reshape the political and economic future of the United States Canada's secret weapon
- energy exports as economic leverage energy has long been the invisible thread tying the economies of the United
- States and Canada together oil pipelines snake across borders electricity grids
- are seamlessly connected and billions of dollars in energy flow north to south each year without disruption but now
- amid a widening trade war and escalating political tensions that quiet dependence has become a ticking time bomb Canada
- has not yet fully weaponized its energy exports but it no longer needs to the mere threat of restricting oil natural
- gas or hydroele electricity has been enough to shake Washington to its core canada is the single largest foreign
- supplier of oil to the United States accounting for nearly half of all American crude imports if that tap were
- to be squeezed even slightly the impact on gas prices would be immediate and catastrophic gasoline costs already
- 15:02
- rising from supply chain disruptions would skyrocket overnight this would ripple through the economy raising
- shipping costs inflating consumer prices and potentially dragging the Federal Reserve into a monetary policy panic and
- oil is only the beginning canada is also a major supplier of electricity to northern US states like New York
- Michigan and Minnesota these regions rely on Canadian hydroelect electric power to keep their grids running
- especially during peak demand seasons if Canada were to cut or even threaten to reduce electricity exports blackouts
- would become a real possibility especially in densely populated urban centers mark Carney Canada's new prime
- minister has played his cards carefully while he has not announced any energy sanctions his administration has been
- deliberately vague in public statements allowing the uncertainty itself to serve as leverage in recent press conferences
- Canadian officials have spoken openly about diversifying energy partners
- 16:00
- signaling that they may prioritize exports to European or Asian markets instead as energy fears spread another
- sector of the US economy begins to buckle under pressure one that feeds every household and builds every home
- immigration crackdown wrecks us farming and manufacturing president Trump's
- aggressive new immigration policies have added fuel to the fire of economic instability in a bid to crack down on
- undocumented labor and restore what he calls lawful American employment mass
- deportation efforts have accelerated across the country but while the rhetoric may win political points the
- real world consequences are wreaking havoc on the very industries Trump vowed to protect nowhere is the damage more
- evident than in American agriculture the US farming system has relied on migrant labor primarily from Mexico and Central
- America to harvest crops tend livestock and perform the grueling work that few American citizens are willing to do as
- deportation sweeps intensify and work visas become harder to obtain entire farming regions are facing an
- 17:03
- existential crisis fields once brimming with workers now sit idle crops rot
- under the sun farmers are forced to abandon harvests because there are simply not enough hands to gather them
- in states like California Georgia and Arizona the labor shortage has reached critical mass some farms are shutting
- down permanently while others are shifting to less labor intensive crops which only reduces output and profit
- margins further but the impact does not stop at the farm the entire food supply chain feels the ripple effect with less
- produce entering the market prices surge grocery stores pass those costs to consumers and inflation accelerates yet
- again meanwhile the manufacturing sector which Trump has championed as the backbone of a revitalized America is
- also suffering immigrant workers both legal and undocumented make up a vital portion of factory labor across the
- Midwest and South with deportations rising and fewer workers available production lines are grinding to a halt
- 18:04
- what was meant to be a campaign for American job security has become a trigger for economic disruption and as
- farms and factories falter another long-standing issue erupts the United States is running out of skilled workers
- the labor crisis that no one planned for there is a silent catastrophe unfolding across the American economy it is not
- driven by a single policy a single president or a single trade war it is the result of decades of demographic
- neglect education failures and a culture that has devalued trade skills it is a
- labor crisis and it is only getting worse for years experts warned that the skilled labor force in America was aging
- out plumbers electricians welders machine operators and HVAC technicians
- were all nearing retirement and there were not enough young workers to replace them those warnings were largely ignored
- today the effects are impossible to miss job postings in trades and construction have surged but few applicants are
- qualified apprenticeship programs exist but enrollment is low many young Americans have been funneled into
- 19:04
- college degrees that do not translate into marketable skills the result is a paradox millions of open jobs and
- millions of unemployed or undermployed workers yet the gap only widens construction firms delay projects for
- months due to lack of workers manufacturing plants operate at partial capacity public infrastructure projects
- stall every sector that depends on skilled hands is now facing bottlenecks and with immigration restrictions
- tightening there is no backfill from abroad the workers who once helped stabilize the labor market are gone the
- policies that were supposed to boost employment have instead helped accelerate a collapse the cultural
- perception of bluecollar work has only made things worse for a generation raised to believe that success only
- comes from a 4-year degree vocational training was treated like a last resort now that stigma is costing the country
- dearly this is not a crisis that can be solved overnight even with rapid investment in trade education it will
- 20:01
- take years to train a new workforce in the meantime companies will lose contracts cities will delay repairs and
- economic growth will slow and if that sounds bad it is about to get worse because now with wages stagnant debt
- rising and essential goods inflating beyond reach america's middle class is approaching the point of no return
- middle class collapse begins in the heart of America's suburbs the unthinkable is happening the middle
- class once the bedrock of economic stability and political moderation is being squeezed to the breaking point
- layoffs are mounting household debt is climbing wages are flat and the cost of living is spiraling out of control it is
- not just the latest economic downturn this is the culmination of overlapping crises trade wars energy instability
- labor shortages and policy missteps have created a perfect storm and for millions of families there is no safety net left
- mortgage payments are rising as interest rates climb credit card balances are ballooning as households try to keep up
- with inflated grocery and gas bills medical expenses are higher rent has soared in cities and even in rural areas
- 21:06
- everywhere the squeeze is on job security once taken for granted in industries like auto manufacturing
- construction and agriculture has evaporated employers are cutting hours freezing raises or outright laying off
- workers families that once considered themselves comfortable are suddenly one emergency away from financial ruin
- confidence is collapsing consumer sentiment indexes are plummeting people are no longer planning for vacations or
- new cars they are trying to figure out how to pay for groceries the idea of upward mobility is being replaced by
- survival anxiety small businesses too are facing unprecedented stress they cannot afford to raise wages enough to
- keep workers yet costs keep rising many are shutting down altogether unable to survive the dual assault of inflation
- and workforce shortages the ripple effects are undeniable with less spending power demand drops as demand
- drops more layoffs follow it is a feedback loop of decline and without swift systemic intervention it threatens
- 22:04
- to become the new normal this is not just a political challenge it is a generational one the middle class is not
- just vanishing it is being erased from the economy and as confidence disappears and recession fears grow the collapse
- spreads from homes and jobs to the very foundation of American power china makes its move as the trade war between the
- United States and Canada intensifies another player is quietly stepping into the spotlight china long regarded as a
- looming threat in the global economic arena is now moving swiftly to take advantage of America's unraveling
- relationships with its neighbors while Washington remains locked in a tit fortat tariff battle with Ottawa Beijing
- is making strategic inroads into North America by signing critical supply and trade agreements with both Canada and
- Mexico and if left unchecked these moves could fundamentally alter the balance of power in the global auto industry the
- stakes are monumental china has already secured large-scale contracts for lithium nickel cobalt and aluminum from
- 23:05
- Canadian mining companies the very minerals that power electric vehicle batteries with the United States locked
- out of these deals due to tariff retaliation and political fallout China is setting up a supply chain that runs
- through North America without needing American approval the effect chinese companies now have preferential access
- to critical resources that once fueled Tesla Ford and General Motors but China
- is not stopping at resources it is also investing in new electric vehicle assembly plants in northern Mexico these
- facilities strategically positioned near the US border are designed to take advantage of the United States Mexico
- Canada agreement allowing Chinese-made vehicles to enter the American market without the tariffs typically associated
- with direct imports by embedding itself in Mexican production and Canadian resources china has effectively
- sidestepped the barriers Trump hoped to erect american trade policy meant to punish China is now ironically helping
- 24:01
- it thrive chinese automakers like BYD NIO and Jile are poised to flood the
- North American market with competitively priced EVs meanwhile American firms
- struggle with disrupted supply chains rising costs and weakening consumer trust china is not just gaining ground
- it is building a new foundation for long-term dominance this is no longer a battle at the border it is a chess game
- and China is five moves ahead europe walks away while the United States
- contends with trade retaliation from Canada and industrial encroachment by China another silent shift is taking
- place across the Atlantic europe once a stable partner and major importer of American goods is rethinking its entire
- economic strategy countries like Germany France and the United Kingdom have watched the escalating trade tensions
- between North American powers with growing concern and they are making changes historically Americanmade
- vehicles and technologies had strong footing in European markets ford Europe Jeep and Tesla enjoyed considerable
- 25:03
- success on the continent supported by favorable trade ties and a shared commitment to transatlantic stability
- but that trust has been shattered as protectionist policies tighten and manufacturing instability rises in the
- US european nations are beginning to turn inward and more alarmingly outward
- toward alternative trade partners germany with its massive automotive sector has started forming closer
- alliances with South Korea and Japan for EV innovation and parts sourcing france is building a domestic battery industry
- to reduce reliance on imports entirely the United Kingdom post Brexit and eager to stabilize its economy has redirected
- investment flows towards Scandinavian tech hubs and Southeast Asian supply chains the United States once the
- epicenter of global innovation is increasingly seen as unpredictable unstable and hostile to international
- cooperation one of the clearest signs of this shift is the quiet withdrawal of American auto brands from European
- 26:00
- showrooms dealers are reporting declining interest in US branded EVs due to delayed shipments regulatory hurdles
- and rising costs driven by American tariffs european consumers already wary
- of political polarization in the US are opting for more reliable Asian and European alternatives and with each
- canceled shipment or terminated partnership the US loses more than just money it loses trust this exodus is not
- about ideology it is about survival european governments are hedging their bets preparing for a future where
- America no longer plays a central economic role and if the current trajectory continues that future might
- arrive sooner than anyone expected the global auto realignment as the US auto sector reels from political backlash
- tariff wars and supply chain chaos two countries are quietly taking the lead japan and South Korea while American
- automakers bicker with Washington and scramble to source materials toyota Honda Hyundai and Kia are executing a
- global strategy years in the making one built on stability localized manufacturing and global trust unlike
- 27:08
- their American counterparts Japanese and South Korean car makers have long embraced hybrid models alongside full
- EVs this approach has proven far more resilient in an era of battery shortages and raw material inflation toyota for
- example has doubled down on hybrid technology in the US market offering vehicles that meet environmental
- regulations without relying entirely on volatile battery components consumers facing rising EV sticker prices are
- responding in droves south Korea's Hyundai and Kia have gone even further by investing billions in US-based
- manufacturing facilities by producing vehicles domestically they bypass many of the political risks plaguing American
- firms and because their vehicles qualify for government tax credits and face none of the backlash associated with
- offshoring they are now perceived as the more American choice by many US consumers meanwhile Japan continues to
- 28:01
- leverage its long-standing trade relationships with both Canada and Mexico this means uninterrupted access
- to critical components and tariff-free production chains that American firms can no longer rely on with reliability
- price control and brand loyalty on their side Japanese and South Korean automakers are rapidly expanding their
- market share in the very territory American companies are retreating from this is not just a temporary win it is a
- long-term realignment japan and South Korea are not filling a gap they are building a new auto empire on US soil
- one that is increasingly independent of American leadership and for every American job lost due to shutdowns and
- trade wars another is created in a Hyundai Toyota or Kia factory the global balance of auto power is shifting end of
- the empire is US auto dominance dead forever with China embedding itself in North American trade Europe cutting ties
- and Asia rising fast the question becomes unavoidable is this the end of American auto dominance the warning
- 29:02
- signs are all there domestic factories are shuttering loyal customers are defecting allies are turning their backs
- and competitors are not just winning they are building new ecosystems in America's backyard the pillars that once
- held up the US auto empire are crumbling and no one in Washington seems to have a plan to stop it trump's protectionist
- policies while popular with his political base have had the opposite effect economically instead of reshoring
- jobs tariffs have driven production costs up forced companies to seek offshore alternatives and made American
- vehicles less competitive the Biden era subsidies and EV mandates have also fallen short creating a fragmented
- overly regulated market that many automakers are struggling to navigate meanwhile the world is moving on canada
- has proven it will no longer be pushed around mexico has become a new hub for Asian and European automakers china is
- bypassing restrictions and forming North American partnerships and Europe has quietly exited the American supply chain
- 30:00
- altogether in the vacuum left behind new alliances are taking shape alliances that do not include the United States
- this is not just an economic failure it is a strategic one america spent decades building its dominance through
- innovation diplomacy and reliable trade but now each policy misstep each diplomatic insult and each economic
- shock chips away at that legacy the world is watching and more importantly it is adapting so what comes next can
- America rebound or is it already too late the answer depends on what US leadership does in the next few months
- without a coordinated national strategy to stabilize trade restore trust with allies and support domestic production
- the decline will accelerate but with bold action targeted investment smarter trade deals and a commitment to
- industrial rebuilding there may still be time to turn the tide one thing is clear the rest of the world is not waiting if
- America continues down this path question will not be whether US auto dominance is over it will be how long
- before the world forgets it ever existed the world isn't waiting for America to catch up it's moving on if this collapse
- caught you offguard hit subscribe so you don't miss the next shock and let us know in the comments can US auto power
- be saved or is it already too