Tesla Warns Trump Administration of Retaliatory Tariff Risks

The electric vehicle maker cautions that trade policies could harm U.S. manufacturers and disrupt global competitiveness.

Tesla sent an unsigned letter to the U.S. Trade Representative expressing concerns about the potential impact of retaliatory tariffs on American exporters, including electric vehicle manufacturers.
The company highlighted that past U.S. trade actions have led to increased costs for domestic manufacturing and higher tariffs on exported electric vehicles, reducing competitiveness in international markets.
Tesla emphasized challenges in sourcing certain components domestically, even with efforts to localize its supply chain, and warned that new tariffs could further strain production costs.
The letter urged the administration to consider the downstream effects of trade policies and proposed a phased approach to allow companies time to adapt to new regulations.
This warning comes as Tesla faces declining U.S. market share and ongoing protests tied to Elon Musk's close ties to President Trump, who recently purchased a Tesla Model S in a public display of support.