Elon Musk’s electric car company, Tesla, has expressed concern that US exporters, including itself, could suffer from retaliatory tariffs imposed by other countries in response to US President Donald Trump’s trade policies. While Tesla supports fair trade, an unsigned letter from the company, addressed to the US trade representative, warned that the tariffs could disproportionately affect US businesses if other nations retaliate.
This letter was issued on the same day Trump hosted an event at the White House, where he publicly supported Tesla and promised to buy one of its vehicles. Despite this display of support, the letter reflected the company’s concerns about the potential negative impact of the president’s trade measures on US exporters.
Tesla’s share price has already dropped by 40% since the start of the year, with some analysts suggesting that the company’s association with Trump may be hurting its brand. However, market analysts point to concerns over Tesla’s production targets and declining sales as the primary reasons for the stock’s fall.
In the letter, Tesla emphasized its efforts to source more parts and components locally in the US to reduce its dependence on foreign suppliers. However, the company warned that certain components are difficult to obtain domestically. The letter noted that previous US trade actions had triggered immediate retaliations from other countries, including increased tariffs on electric vehicles (EVs) imported into those regions. China, Tesla’s second-largest market, has already responded to US tariffs with levies on cars.
The EU and Canada have also threatened to impose their own retaliatory tariffs in response to the US’s recent duties on steel and aluminum. Meanwhile, protests have targeted Tesla showrooms, criticizing Musk’s role in Trump’s administration, where he serves as the head of the Department of Government Efficiency (DOGE).
Earlier this week, Trump addressed these protests, labeling anti-Tesla demonstrators as “domestic terrorists” during an event where he sat behind the wheel of a red Tesla Model S. He declared that anyone using violence against the carmaker would “go through hell,” reinforcing his support for the company and Musk.
