Elon Musk embraces then candidate Donald Trump during a campaign rally in Butler, Pennsylvania in 2024.
Tesla Inc. issued a stark warning this week, indicating potential retaliation in the export market stemming from President Trump’s aggressive tariff policies.
In a public letter to the U.S. trade representative, Tesla stated, “U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions.”
The company’s concerns reflect growing unease as tariffs have strained relations with some of the U.S.’s closest partners and rattled global markets.
“For example, past trade actions by the United States have prompted immediate responses from targeted nations, including increased tariffs on electric vehicles imported into those regions,” the letter noted.
The office of the trade representative has not yet commented on Tesla’s statements.
Tesla’s concern comes as CEO Elon Musk has become one of President Trump’s most ardent supporters, amidst an administration pushing a more nationalistic agenda.
Despite Musk’s formerly liberal stance and Trump’s earlier criticisms of electric vehicles, they have formed an unexpected partnership.
The authorship of the letter remains unclear, and Tesla did not disclose whether Musk played a role in its drafting.
Musk is also leading the newly formed Department of Government Efficiency, aimed at shrinking the federal workforce and cutting government expenditures.
Trump’s trade policies have already resulted in retaliatory tariffs affecting billions of dollars in American goods, including steel, aluminum, and bourbon from Kentucky.
Tesla emphasized in its letter that even with efforts to manufacture domestically, limitations exist, particularly with regard to essential lithium-ion batteries.
“Tesla supports a U.S. Trade Representative evaluation of domestic supply chain constraints to ensure American manufacturers are not unfairly burdened by trade actions that could lead to costly tariffs on essential components,” the letter concluded.
“Trade actions should not conflict with the objective of enhancing and supporting domestic manufacturing.”
