Tesla, the American electric vehicle manufacturer owned by billionaire Elon Musk, has cautioned that President Donald Trump's trade policies could expose the company to retaliatory tariffs and lead to higher production costs for vehicles built in the United States.
In a letter addressed to Jamieson Greer, the U.S. President's Special Trade Representative (USTR), Tesla voiced support for free trade while warning that U.S. exporters face "a disproportionate impact when other countries respond to United States trade actions," according to DPA, as reported by digi24.ro.
"For example, past trade actions by the United States have resulted in immediate decisions by targeted countries, including increasing tariffs on EV imports into those countries," the letter, dated March 11, stated.
The Trump administration's tariffs have already prompted retaliatory measures from Canada and the European Union, among others. While Tesla has ramped up domestic production, certain raw materials and components still rely on international suppliers.
"Trade actions should not (and need not) conflict with the goals of further increasing production and supporting domestic industry," the letter emphasized.
According to the Financial Times, the letter remained unsigned, with sources claiming that no one at Tesla wanted to risk being fired for sending it.
Tesla operates manufacturing plants in China and Germany, in addition to its U.S. facilities, but While CEO Elon Musk was a key ally of Trump during the automaker has recently faced significant challenges such as the Tesla stock dropping drastically amid declining sales.
In a move seen as an attempt to garner support, Trump attended a Tesla sales event at the White House this week, where he reportedly purchased one of the company’s vehicles.
