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Tesla tells US government Trump trade war could ‘harm’ EV companies

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Letter from Elon Musk’s firm to US trade representative warns of ‘downstream impacts’ of tit-for-tat tariffs

Elon Musk’s Tesla has warned that Donald Trump’s trade war could expose the electric carmaker to retaliatory tariffs that would also affect other automotive manufacturers in the US.

In an unsigned letter to Jamieson Greer, the US trade representative, Tesla said it “supports fair trade” but that the US administration should ensure it did not “inadvertently harm US companies”.

Tesla said in the letter: “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 company, led by Musk, a close Trump ally who is leading efforts to downsize the federal government, said it wanted to avoid a similar impact to previous trade disputes that resulted in increased tariffs on electric vehicles imported into countries targeted by the US.

Tesla said: “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 United States have resulted in immediate reactions by the targeted countries, including increased tariffs on electric vehicles imported into those countries.”

Trump has imposed significant tariffs that will affect vehicles and parts made around the world.

https://www.theguardian.com/technology/2025/mar/14/tesla-trump-trade-war-harm-car-companies-elon-musk-tariffs