AAH #728 - Countdown to the Tariff Disaster

·1 hr 4 min·5 clips

President Trump threatens 25% tariffs on Mexican and Canadian vehicles in two days, risking a supply chain disaster.

The episode begins with a historical trivia segment about Mazda's origins as a cork manufacturer. The main discussion focuses on President Trump's threat to impose 25% tariffs on vehicles and components from Canada and Mexico, set to take effect in two days. Paul Eichenberg, a consultant, shares a case study from the previous Trump administration where steel tariffs raised costs without creating new jobs or capacity. The panel debates the likelihood of tariffs being implemented and their potential impact, estimating a $10,000 price increase on average vehicles. They explore how tariffs could disrupt integrated North American supply chains, citing Linamar CEO Linda Hasenfratz's prediction of a production halt within a week. The conversation broadens to include policy comparisons between the Biden and Trump administrations on EV incentives and emissions regulations. Later, the hosts review recent vehicles like the GMC Terrain and Toyota 4Runner. The episode then shifts to Tesla's Q1 2025 financial results, noting a 6% decline in auto revenue and 18% rise in operating expenses, with analysts divided on whether Tesla is becoming a traditional automaker. Elon Musk's announcements about unsupervised FSD testing and Optimus robot production are discussed alongside Waymo's expansion into challenging environments like Michigan's Upper Peninsula. The panel examines GM's Super Cruise revenue projections, dealer resistance to EVs, and hybrid vehicles' profitability. They conclude by predicting lower auto sales in 2025 due to tariff-related uncertainty and price hikes.

As heard by us

A tariff debate sharpens as it reaches supplier readiness and the industry's EV bet.

Tariff uncertainty gives this Auto Line After Hours review its shape, as the panel weighs how a new trade hit could land on an auto industry already spending toward 2035.

Read the full review in PlayNext →

Why you'd press play

You want the tariff conversation from the supplier side before it lands in your driveway?

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