Tesla has warned that it – and other major American exporters – could face retaliatory tariffs in response to President Donald Trump’s aggressive trade policies.
The company’s concerns align with those of many US businesses, but its statement is particularly notable given Tesla’s high profile and the close ties between its CEO, Elon Musk, and the Trump administration.
Musk, a strong ally of Trump, has been leading White House efforts to reduce the size of the federal government as head of the so-called Department of Government Efficiency. The warning was issued in a letter to the US Trade Representative’s Office, which was posted on the agency’s website. The letter, dated Tuesday, was unsigned but appeared on Tesla letterhead. Tesla has not responded to requests for comment.
In the letter, Tesla stressed the need to ensure that the administration’s trade policies do not inadvertently harm US companies. The automaker noted that it had already faced retaliatory tariffs in previous trade disputes, leading to increased duties on electric vehicles exported to certain countries affected by US tariffs. It warned that American exporters are particularly vulnerable to such countermeasures.
The company also highlighted concerns over potential new tariffs Trump is considering on global vehicle and parts imports, expected to be decided in early April. While Tesla has aggressively localized its supply chain, it cautioned that some parts and components are difficult or impossible to source domestically.
The automaker urged a phased approach to any new tariffs, allowing companies time to adjust and implement compliance measures.
As a major US manufacturer and exporter, Tesla called on the US Trade Representative to weigh the downstream consequences of trade actions intended to address unfair practices. Autos Drive America, a trade group representing foreign automakers such as Toyota, Volkswagen, BMW, Honda, and Hyundai, also submitted comments warning that broad-based tariffs would disrupt production at US assembly plants.
The group argued that automakers cannot shift supply chains overnight and cautioned that the increased costs would likely result in higher consumer prices, fewer vehicle options, and potential job losses across the supply chain.
Faridah Abdulkadiri
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