Tesla issued a warning about the potential consequences of Donald Trump’s trade war on electric vehicle manufacturers in the US, suggesting that retaliatory tariffs could harm American automotive companies.
In correspondence to US trade representative Jamieson Greer, Tesla expressed support for “fair trade” whilst urging the administration to avoid unintended negative impacts on US businesses.
The letter stated, “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.”
The electric vehicle manufacturer, under the leadership of Musk, who maintains close ties with Trump and supports federal government reduction, expressed concerns about repeating previous trade disputes that led to increased tariffs on electric vehicles in countries targeted by US trade actions. “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,” cautioned Tesla.
The company further noted, “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.”
Regarding implementation timelines, Tesla advised, “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.”
Trump’s implementation of significant vehicle and parts tariffs globally has prompted substantial retaliation from the EU and Canada regarding steel and aluminium imports, while the UK has not yet announced countermeasures.
Tesla’s share value has declined by over a third in the past month, following controversial actions by Musk, including his support for Alternative für Deutschland, chainsaw demonstration at a conservative event, and accusations against Prime Minister Keir Starmer regarding grooming gang investigations, as reported by the Guardian.
As Tesla shares fell, Trump attempted to come to aid by buying a “brand new Tesla,” criticising “radical left lunatics” for “illegally” boycotting the company, following Tesla’s most significant share price decrease in nearly five years.
