Tesla has taken alarms on potential reprisal rates while President Trump considers large prices for vehicles and parts made in the world. This decision has aroused concerns among the main American exporters, including Tesla, concerning possible reciprocal actions on the part of other countries.
The policy of the electric vehicle manufacturer has expressed apprehensions in a letter to the office of the American commercial representative, stressing the risk of negative effects on American companies due to the trade war initiated by Trump. “As an American manufacturer and exporter, Tesla encourages the USTR to consider the downstream impacts of certain measures proposed to combat unfair commercial practices,” said the letter.
Tesla’s concerns are well founded because Canada has already started to implement the policy changes targeting the automaker directly. For example, British Columbia BC Hydro has announced that it would exclude Tesla products from its discount program on EV charging station. Adrian Dix, Minister of Energy of British Columbia, justified this decision by declaring: “I thought they [Tesla products] should not be made available on a public subsidy program now. I do not think that anyone in British Columbia must be informed why, and I think most people would support their withdrawal from this list. “”
The letter from the automaker to the US trade representative warned the disproportionate impacts facing American exporters when other nations are retaluating. “American exporters are intrinsically exposed to disproportionate impacts when other countries react to American commercial actions,” said Tesla, citing the previous commercial actions of the United States which have led to an increase in prices on imported electric vehicles.
Tesla, which supplies around 25% of the parts of its Mexico vehicle and is also based on Canadian parts, underlined the challenge of supplying certain components at the national level. “Certain parts and components are difficult or impossible to stock up in the United States,” said the company.
In the light of these developments, the role of the political team becomes more and more complex, especially since the CEO of Tesla, Elon Musk, is a notable supporter of Trump. The letter stressed that Tesla was affected by the Trump trade war, even if the CEO is close to Trump, said Financial Times.
Despite his alliance with Trump, Musk remained silent on the trade war. However, the political manufacturer’s political team highlights the need to ensure that Trump’s policies do not inadvertently harm American businesses.
In addition, the Autos Drive America commercial group, representing the main foreign car manufacturers, warned that vast prices could disrupt production in the United States assembly factories and cause potential job losses.
Canadian politicians are considering new measures, the NPD chief Jagmeet Singh offering a 100% tariff on Tesla vehicles imported from the United States. This proposal marks an important escalation in the trade conflict initiated by Trump’s aggressive tariff policies.
Tesla’s political team continues to navigate these challenges, emphasizing the need for a progressive approach to allow companies to prepare for potential changes. “The automaker adds that companies” will benefit from a progressive approach which allows them to prepare accordingly and guarantee that appropriate measures of supply chain and compliance are taken “,” the letter transmitted.
