Elon Musk embraces Donald Trump at a campaign rally held in Butler, Pennsylvania in 2024. Anna Money Maker/Getty Images Hides North America Caption
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Tesla Inc. warned this week that President Trump’s aggressive tariff policies could lead the company to face retaliation in the export market.
In a public letter to US trade representative Jamieson Greer, Tesla said, “US exporters are exposed to inherently disproportionate effects when other countries respond to US trade actions.”
These tariffs have already alienated some of the closest US partners, sending the global market to tailspin, as reported by NPR.
“For example, past trade actions by the United States have led to immediate responses by target countries, including increased tariffs on EVs imported to these countries.”
Greer’s office did not immediately respond to requests for comment.
Tesla’s comments came as billionaire CEO Elon Musk emerged as one of Trump’s most loyal supporters in an administration that pushes the country into a more nationalistic attitude than is seen in a generation.
Despite Musk’s previous seemingly liberal public twists, and despite his criticism of past past past electric vehicles, the two unlikely bed fellows have formed a close alliance.
The cause of the unsigned letter was not immediately clear, and Tesla did not respond promptly to questions about whether Musk had any involvement in drafting it.
Musk is leading a new, controversial division of government efficiency that seeks to destroy the size of the federal workforce and reduce government spending.
Trump’s new trade policy has already led to retaliatory tariffs affecting billions of dollars in American products, including steel, aluminum and Kentucky bourbon.
In a letter to Greer, Tesla said that despite the most powerful efforts to ensure that its products are manufactured domestically, there are still restrictions on what can be fully sourced within the United States, especially lithium-ion batteries.
“Tesla supports the USTR process to further assess domestic supply chain restrictions and ensure that US manufacturers are not overly burdened by trade measures that could impose cost-free tariffs on required components.
“Trade measures cannot (and are not necessary) conflict with the goals to further increase and support domestic manufacturing.”
