Tesla has voiced concern that President Donald Trump's trade policies may severely impact the company’s operations, warning that retaliatory tariffs could make electric vehicle production in the U.S. more expensive.
In a letter addressed to U.S. Trade Representative Jamieson Greer, Tesla cautioned that American businesses could face disproportionate consequences if other nations respond to U.S. tariffs with trade restrictions of their own.
The letter, obtained by Financial Times, Boosted and Reuters, urges the administration to manage trade disputes carefully to avoid harming U.S. industries, including the growing electric vehicle (EV) sector.
Tesla’s Quiet Reproach—Despite Close Ties
The criticism stands out given Tesla’s historically close relationship with the Trump administration. Elon Musk, Tesla’s CEO, currently leads the Office of Government Efficiency (DOGE), a Trump-appointed position focused on reducing government waste.
Despite that connection, Tesla’s letter emphasizes that the company is increasingly concerned about the negative fallout of escalating trade tensions.
The letter, unsigned by a specific individual, refers to previous instances where EU and Canadian tariffs—implemented in response to earlier U.S. trade actions—have already affected Tesla’s ability to sell its vehicles abroad.
Steel and Aluminum Tariffs Spark Chain Reaction
The warning comes in the wake of Trump's 25% tariffs on steel and aluminum imports, which have triggered countermeasures from the European Union and other key trading partners.
The European Commission, for example, has announced plans to impose tariffs on U.S. goods worth €26 billion, or about $28 billion—moves that could further complicate global supply chains for American manufacturers.
Tesla argues that such tit-for-tat policies threaten the competitiveness of U.S.-based production, particularly in high-tech sectors like electric vehicles, which rely on complex, global supply chains.
Tesla has not provided further public comment on the letter, and there has been no official response from the Trump administration.
