Tesla, the electric vehicle manufacturer led by Elon Musk, has issued a warning that it, along with other American exporters, may face negative consequences due to retaliatory actions from other nations in response to Donald Trump’s trade tariffs.
Mr. Musk, a close associate of the President, is actively working to streamline the federal government.
In a letter addressed to the U.S. trade representative, which was not signed, Tesla expressed its “support” for fair trade but raised concerns that U.S. exporters could suffer “disproportionate impacts” if other countries decide to retaliate against the tariffs.
This letter was sent on the same day that President Trump held an event at the White House, during which he pledged to purchase a Tesla as a gesture of support for Mr. Musk.
The authorship of the letter remains uncertain, as it lacks a signature, and it is unknown whether Mr. Musk was aware of its contents.
Since the beginning of the year, Tesla’s stock price has declined by 40%. As the company’s CEO, Mr. Musk faces criticism regarding his close ties to the Trump administration, with some suggesting that this association may be detrimental to the brand. However, market analysts attribute the decline in share value more to concerns about Tesla’s ability to meet production goals and a decrease in sales over the past year.
In the correspondence, Tesla indicated that it is modifying its supply chains to identify as many local suppliers for its vehicles and batteries as possible, thereby reducing its dependence on international markets.
“None the less,” the company cautioned, “even with aggressive localisation of the supply chain, certain parts and components are difficult or impossible to source within the US.”
The President of the United States has enacted an additional 20% tariff on all imports from China, leading Beijing to implement retaliatory tariffs, including those on automobiles. China ranks as Tesla’s second-largest market following the United States.
“For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries,” the letter states.
Both the European Union and Canada have signaled intentions to impose extensive retaliatory measures in response to tariffs on steel and aluminum imports into the United States, which were implemented earlier this week.
