Electric car maker Tesla has warned that the Trump administration’s trade policy could be harmful to US-based EV companies.
In a March 11 letter to the unsigned US Trade Representative (USTR), the company owned by billionaire Elon Musk, now a special adviser to President Trump, encouraged them to consider how trade policies could “harm” domestic automakers like Tesla.
“As a US manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices,” writes Tesla.
The company has raised concerns over retaliatory tariffs against the US that could make the vehicles more expensive and stop demand abroad. President Trump Increase in tariffs All steel and aluminum imports fell to 25% on Wednesday, and they claim they will help create jobs for U.S. factories.
The European Union quickly announced that it would retaliate with the measures that will take effect on April 1.
The US previously levied 25% on Canada and Mexico. Automakers warned that it could raise the costs of cars Thousands of dollars.
President Trump is tapping Tesla’s CEO Musk to lead the White House Government Efficiency Bureau, or Doge, established in the White House. Reduce federal spendingin part by screening federal workers. Doge has it Thousands of federal workers suddenly fired Over the past three weeks, it has caused confusion across multiple agencies.
Customs duties can cause unfair burdens
In the letter, Tesla highlighted its commitment to investing in the domestic supply chain, including within the state of battery manufacturing and processing facilities. However, the company highlighted the complexity of its automobile supply chains and urged USTR to consider companies like Tesla to “unfairly burden them with trade actions” taken by the White House.
While President Trump has argued that tariffs will promote more domestic manufacturing and create jobs for Americans, Tesla has argued in a letter that “even aggressive supply chain localization makes certain parts and components difficult or impossible to source within the United States.”
Tesla wrote to USTR on the same day President Trump said he would buy Tesla on social media to support Musk and his company’s slump stake.
Some Buyers are turned off by mask political actionit appears they are comparing the company’s sales in both the US and overseas.
