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The Wall Street Publication > Blog > Markets > Tesla warns it is uncovered to retaliatory tariffs amid commerce warfare
Markets

Tesla warns it is uncovered to retaliatory tariffs amid commerce warfare

Editorial Board Published March 14, 2025
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Tesla warns it is uncovered to retaliatory tariffs amid commerce warfare
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Tesla is warning that it and different U.S. exporters may very well be hit with retaliatory tariffs as President Donald Trump imposes levies on American buying and selling companions.

In a letter despatched to U.S. Commerce Consultant Jamieson Greer earlier this week, Tesla wrote that it “supports a robust and thorough process to gather information to ensure appropriate actions are taken to address unfair trade practices and which, in the process, do not inadvertently harm U.S. companies.”

Tesla CEO Elon Musk is a detailed ally of Trump, who tasked him with main the Division of Authorities Effectivity (DOGE), and the corporate’s considerations are much like these raised by different U.S. exporters amid the widening commerce warfare.

“As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts taken to address unfair trade practices,” Tesla wrote.

TRUMP SAYS US HAS ‘STUPID TRADE,’ NOT ‘FREE TRADE’

Tesla CEO Elon Musk is a detailed ally of President Donald Trump, who tasked him with main DOGE. (Saul Loeb/Pool/AFP through Getty Photographs / Getty Photographs)

“While Tesla recognizes and supports the importance of fair trade, the assessment undertaken by USTR of potential actions to rectify unfair trade should also take into account exports from the United States,” the letter stated. 

Ticker Safety Final Change Change % TSLA TESLA INC. 240.68 -7.41
-2.99%

“U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions. For example, past trade actions by the United States have resulted in immediate reactions by targeted countries, including increased tariffs on EVs imported into those countries,” the corporate added.

TRUMP THREATENS FURTHER TARIFFS ON CANADIAN STEEL, ALUMINUM, ELECTRICITY, VEHICLES

Trump Says He's Going To Buy A Tesla As Shares Slump

President Trump has levied tariffs on U.S. buying and selling companions in what he views as a transfer to spice up American business. (Samuel Corum/Sipa/Bloomberg through Getty Photographs / Getty Photographs)

Tesla’s letter additionally outlined how previous tariff fights have resulted in increased manufacturing prices and better abroad gross sales costs, which make the corporate’s autos much less aggressive.

“Past U.S. special tariff actions have thus (1) increased costs to Tesla for vehicles manufactured in the United States, and (2) increased costs for those same vehicles when exported from the United States, resulting in [a] less competitive international marketplace for U.S. manufacturers,” Tesla defined.

Tesla additionally wrote that “future trade policy actions should take into consideration existing limitations in the domestic supply chain.”

STELLANTIS SAYS IT’S AIMING FOR MORE AMERICAN MANUFACTURING, THANKS TRUMP FOR TARIFF EXEMPTION

Donald Trump and Elon Musk

President Trump just lately purchased a Tesla as a present of help for CEO and DOGE chief Elon Musk. (MANDEL NGAN/AFP through Getty Photographs / Getty Photographs)

Tesla famous that its provide chain has a big diploma of home elements, however some auto elements cannot be sourced within the U.S., which leaves automakers uncovered to an onerous burden that makes it tougher to maintain American manufacturing jobs.

“Even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the United States. Tesla supports a process by USTR to further evaluate domestic supply chain limitations to ensure that U.S. manufacturers are not unduly burdened by trade actions that could result in the imposition of cost-prohibitive tariffs on necessary components, or other import restrictions on items essential to support U.S. manufacturing jobs,” the corporate wrote.

“Trade actions should not (and need not) conflict with objectives to further increase and support domestic manufacturing.”

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“As USTR continues to evaluate possible trade actions to rectify unfair trade practices, consideration should also be given to the timeline of implementation. U.S. companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken,” Tesla’s letter concluded.

Reuters contributed to this report.

TAGGED:EXPOSEDretaliatorytariffsTeslatradewarwarns
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