Tesla warns it’s exposed to retaliatory tariffs on exports amid trade war

MT HANNACH
5 Min Read
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Tesla warns that IT and other American exporters could be struck by reprisals as president Donald Trump Imposes samples on American trade partners.

In a letter sent to the US trade representative Jamieson Greer earlier this week, Tesla wrote that it “supports a robust and in -depth process to collect information to ensure that appropriate measures be taken to combat unfair business practices and which, in the process, inadvertently harm American businesses”.

CEO of Tesla Elon Musk is a close ally of Trump, who responsible for leading the Ministry of Government Effectiveness (DOGE), and the company’s concerns are similar to those raised by other American exporters in the midst of the widening of the trade war.

“As an American manufacturer and exporter, Tesla encourages the USTR to consider the downstream impacts taken to combat unfair commercial practices,” Tesla wrote.

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Tesla and the CEO of SpaceX, Elon Musk, take place at the inauguration ceremony before Donald Trump was sworn in as 47th American president of the American Capitol in Washington, DC, January 20, 2025. Saul Loeb / Pool / AFP via Getty Images

Tesla CEO Elon Musk is a close ally of President Donald Trump, who has in charge of leader Doge. (Saul Loeb / Pool / AFP via Getty Images / Getty Images)

“While Tesla recognizes and supports the importance of fair trade, the evaluation undertaken by the USTR of potential actions to rectify unfair trade should also take into account exports from the United States, “said the letter.

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Tsla Tesla inc. 240.68 -7.41

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“American exporters are intrinsically exposed to disproportionate impacts when other countries react to American commercial actions. For example, previous commercial actions in the United States have led to immediate reactions by targeted countries, including increased prices on electric vehicles imported in these countries,” added the company.

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President Trump has led to prices from American trade partners in what he considers a decision to stimulate American industry. (Samuel Corum / Sipa / Bloomberg via Getty Images / Getty Images)

Tesla’s letter also described how past Fight price have resulted in an increase in manufacturing costs and higher selling prices, which makes company vehicles less competitive.

“The special actions of the United States special prices have thus (1) increased costs for Tesla for vehicles manufactured in the United States, and (2) increase costs for these same vehicles when exported from the United States [a] Less competitive market market for American manufacturers, “said Tesla.

Tesla has also written that “future commercial policy actions should take into account the existing limits of the interior supply chain”.

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President Trump recently bought a Tesla as a demonstration of support for the CEO and chief of Doge, Elon Musk. (Mandel Ngan / AFP via Getty Images / Getty Images)

Tesla noted that its supply chain has a large degree of domestic components, but certain automotive parts cannot be obtained in states American manufacturing jobs.

“Even with an aggressive location of the supply chain, certain parts and components are difficult or impossible to source in the United States. Tesla supports a process by USTR in order to further assess the limitations of the national supply chain to ensure that American manufacturers are not unduly overwhelmed by commercial actions which could cause the imposition of American tariffs on the components of the necessary company.

“Commercial actions should not (and do not need) to confront objectives to increase and further support interior manufacturing.”

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“While the USTR continues to assess possible commercial actions to rectify unfair commercial practices, a consideration should also be granted to the implementation calendar. American companies will benefit from a progressive approach which allows them to prepare accordingly and guarantee that appropriate measures of supply and compliance chain are taken,” concluded Tesla’s letter.

Reuters contributed to this report.

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