Elon Musk’s electric car maker Tesla has warned of that, and other US exporters could be harmed by countries retaliating against Donald Trump’s trade tariffs.
Musk is a close ally of the US president and is making major efforts to reduce the size of the federal government.
However, in an unsigned letter to US trade representatives, Tesla said it was concerned that US exporters would have been “exposed to disproportionate effects” if other countries retaliate against tariffs.
The letter was dated the same day Trump held an event at the White House and promised to buy Tesla at Musk’s support show.
It is unclear who wrote the letter or whether Musk knew it, as he has not been signed at Tesla.
Tesla stock has fallen 40% since the beginning of the year. Musk is the automaker’s chief executive and some have argued that his alliance with the Trump administration is hurting the brand, but market analysts say Tesla over the past year has gathered production targets and concerns about declining sales.
In the letter, Tesla said it does not rely on foreign markets to make changes to its supply chain and find many local suppliers of cars and batteries.
“Not at all,” he warned. “Even aggressive supply chain localization makes certain parts and components difficult or impossible to source within the United States,” he warned.
The US president has imposed an additional 20% tariff on all imports from China, urging Beijing to respond to retaliatory taxes, including cars. China is Tesla’s second largest market after the US.
“For example, past trade actions by the United States have led to immediate responses by target countries, including increased tariffs on imported EVs to these countries,” the letter reads.
Both the EU and Canada are threatening widespread retaliation against tariffs on steel and aluminum imports into the US, which came into effect earlier this week.
Protesters have been targeting Tesla showrooms for recent weeks in protest of the role of cost-cutting in Trump’s administration, the head of Trump’s administration (DOGE).
Earlier this week, Trump held an event at the White House, saying that those who protest against Tesla should be labeled domestic terrorists.
Trump said protesters “harm the great American company” and that anyone using violence against electric car makers “goes through hell.”
