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Tesla has warned the US government that President Donald Trump’s ongoing trade war could lead to retaliatory tariffs that may negatively impact the American electric vehicle (EV) industry, including Tesla, foreign media reported. In an unsigned letter addressed to Jamieson Greer, the US Trade Representative, Tesla stated its support for fair trade policies but cautioned the administration to avoid inadvertently harming domestic companies.
“As a US manufacturer and exporter, Tesla encourages the Office of the United States Trade Representative to consider the downstream impacts of certain proposed actions taken to address unfair trade practices,” the company wrote, according to Reuters.
Tesla, led by CEO Elon Musk—a powerful Trump ally—expressed concerns about past trade disputes leading to increased tariffs on EVs imported into targetted countries.
Raising caution that similar retaliatory measures could once again place US exporters at a disadvantage, the automaker noted: “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.”
“For example, past trade actions by the US have resulted in immediate reactions by the targeted countries, including increased tariffs on electric vehicles imported into those countries.”
Trump has imposed substantial tariffs affecting vehicles and auto parts manufactured worldwide, prompting significant retaliatory taxes from key US trading partners, including the European Union and Canada, which have introduced large-scale countermeasures against tariffs on steel and aluminum.
Tesla’s stock has experienced a steep decline in recent weeks, dropping more than a third in value over the past month, the report said, adding that the downturn has been attributed to concerns over a potential backlash against Musk over recent political controversies.
Earlier this week, Trump sought to rally support for Tesla as he declared that he was purchasing a “brand new Tesla,” even as he blamed “radical left lunatics” for allegedly orchestrating an illegal boycott of the EV company. His comments came just a day after Tesla suffered its worst single-day stock price decline in nearly five years.
