Tesla has cautioned the Trump government that retaliatory tariffs imposed on the US might hurt the company and encouraged the government to consider its trade policy thoughtfully.
Elon Musk’s Tesla has cautioned the Donald Trump administration that retaliatory tariffs levied on US manufacturers might hurt its business. The electric vehicle manufacturer also advised the government to think long and hard about its trade policy in the future.
As a U.S. producer and exporter, Tesla urges USTR to take into account the downstream effects of some proposed actions taken to counter unfair trade practices,” the Tesla representatives wrote to US Trade Representative Jamieson Greer on March 11.
Whereas Tesla acknowledges and supports the need for fair trade, the review being done by USTR of options for possible remedies for unfair trade should also include consideration of American exports, “the letter also said.
Tesla warned that previous US tariff actions resulted in quick retaliation by affected nations, such as increased tariffs for imported electric cars (EVs). In a letter signed “Sincerely” by no one, the firm implored US trade policymakers to take account of the consequences of such actions on US makers.
Tesla shares recently fell, wiping out gains since Election Day. Sales in Europe declined 45% in January, the European Automobile Manufacturers’ Association reported. The letter further alerted that trade policies have increased the price of U.S.-made cars, especially when shipped abroad.
Tesla also underlined domestic supply chain constraints issues, pointing out that certain EV components, such as lithium-ion batteries, do not exist within the US. The firm, which has over 70,000 employees, has manufacturing centers in a range of states such as California, Texas, and Nevada.
