Elon Musk’s Tesla has seen major drops around the globe and a significant $120 billion drop in net worth since his foray into politics. But much more awaits him and the EV sector. President Donald Trump’s tariffs are set to make an impact in the EV sector as well, so warns Tesla.

In an unsigned letter to Jamieson Greer, the US trade representative, Tesla has said that although it “supports fair trade”, the US administration should ensure that it did not “inadvertently harm US companies”.

Trump has imposed tariffs that will impact vehicles and parts made around the world. 

Tesla said in the letter: “As a US manufacturer and exporter, Tesla encourages the Office of the United States Trade Representative (USTR) to consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”

“US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions. The assessment undertaken by USTR of potential actions to rectify unfair trade should also take into account exports from the United States”, Tesla said.

“For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on electric vehicles imported into those countries.”

In Germany where Musk is supporting a far-right political party, sales fell almost 70% compared to January last year. Per Time magazine, Tesla sold 7,517 vehicles in Europe in January, half of what it sold in January the year prior. Tesla saw a 50% drop in sales in Portugal and 45% in France according to Reuters, while sales fell 42% in Sweden and 48% in Norway.

Trump also said on Truth Social this week “Radical Left Lunatics, as they often do, are trying to illegally and collusively boycott Tesla.”

On Tuesday, Trump bought a brand new red Tesla with the company’s CEO by his side. “Wow, that’s beautiful,” Trump said as he eased his way into the driver’s seat of a Model X.

Recently anti-DOGE protesters gathered near Tesla stores to protest against his push to cut government funding with many holding banners that said, “Elon must go away” and “honk if Elon Musk should be fired”.

“As USTR continues to evaluate possible trade actions to rectify unfair trade practices, consideration should also be given to the timeline of implementation. US companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken”, Tesla said.