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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.

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Overview

  • 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.