Automotive News Europe — 2025-03-13
Automotive Industry
Tesla has warned that it and other major American exporters are exposed to retaliatory tariffs that could be leveled in response to President Donald Trump’s aggressive use of tariffs.
Tesla CEO Elon Musk, a close Trump ally, has been leading the White House effort to shrink the size of the federal government. The billionaire heads up the so-called Department of Government Efficiency.
The letter reflects comments by many US businesses concerned by Trump’s tariffs, and is notable because it is from Tesla. It is not clear who wrote the letter, which is unsigned but is on company letterhead.
Tesla said it is important to ensure that the Trump administration’s efforts to address trade issues “do not inadvertently harm US companies.”
It said it was eager to avoid retaliation of the type it faced in prior trade disputes, which resulted in increased tariffs on electric vehicles imported into countries subject to US tariffs.
“US exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions,” Tesla said in a letter to the US Trade Representative’s Office. “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.”
Trump is considering imposing significant tariffs on vehicles and parts made around the world in early April.