Elon Musk greets then-candidate Donald Trump at a campaign rally in Butler, Pennsylvania in 2024.
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Anna Moneymaker/Getty Images North America
Tesla Inc. issued a warning this week that it might face backlash in the export market as a result of President Trump’s stringent tariff policies.
In a public communication to U.S. trade representative Jamieson Greer, Tesla expressed, “U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions.”
These tariffs have already strained relationships with some of the United States’ closest allies and caused a significant downturn in global markets, as reported by NPR.
“For instance, previous trade measures by the United States led to immediate reactions from targeted nations, resulting in increased tariffs on electric vehicles shipped to those countries.”
Greer’s office did not respond promptly to a request for comment.
Tesla’s remarks come as its billionaire CEO, Elon Musk, has aligned closely with Trump, one of his most ardent supporters, in an administration moving towards a more nationalistic agenda than in recent generations.
Even with Musk’s previously liberal stance and Trump’s past criticisms of electric vehicles, the two have built a strong partnership.
The origin of the unsigned letter remains unclear, and Tesla did not quickly clarify Musk’s involvement in its composition.
Musk oversees the newly established and controversial Department of Government Efficiency, which aims to reduce the federal workforce and lower government expenditures.
Trump’s trade policies have already instigated retaliatory tariffs impacting billions of dollars of American goods, such as steel, aluminum, and bourbon from Kentucky.
In its letter to Greer, Tesla mentioned that despite rigorous efforts to ensure the domestic manufacturing of its products, there remain constraints regarding fully sourcing materials, particularly lithium-ion batteries.
“Tesla endorses a review process by USTR to further assess domestic supply chain challenges, ensuring that U.S. manufacturers are not unduly burdened by trade actions that could result in high-cost tariffs on essential components or other import restrictions vital to support U.S. manufacturing jobs,” the letter articulated.
“Trade actions should not (and need not) contradict objectives aimed at boosting and sustaining domestic manufacturing.”
