Tesla warned US Trade Representative (USTR) Jamieson Greer that electric vehicle companies and other American exporters are “essentially exposed” to retaliatory fees collected in response to people from the Trump administration.
“Tesla recognizes and supports the importance of fair trade, but the assessment made by USTR of potential actions to correct unfair trade should also take into account exports from the US.” letter To Greer on Tuesday.
“U.S. exporters are exposed to inherently disproportionate effects when other countries respond to US trade actions,” it continued.
EV also urged Greer to consider “existing restrictions on the domestic supply chain,” and Tesla tried to create a state with a strong supply chain, but said that some vehicle parts would be “difficult or impossible” to source in the US.
“The US manufacturers said they support a process that ensures that they are not overly burdened by trade measures that could impose non-cost tariffs on necessary components, or that they are not overly burdened by trade measures that could result in import restrictions on items essential to supporting US manufacturing.
“Trade measures should not be at odds with (and not necessary) the goals to further increase and support domestic manufacturing,” he continued.
The letter from Musk's company comes as President Trump has collected numerous tariffs on U.S. trading partners in recent weeks, urging several countries to respond to their own tariffs on U.S. goods.
Trump has imposed a 20% tariff on China and a 25% tariff on both Canada and Mexico. However, he announced a temporary exemption last week for auto parts and goods subject to the North American trade agreement signed in 2020 during his first term.
The exemption is expected to end on April 2, when Trump plans to collect mutual tariffs on countries where he is obligated to US goods.
Major tech companies, including Tesla, have seen stocks fall over in recent weeks amid widespread turmoil in the stock market.
The tech sector, which has made significant profits over the past few years amid the AI epidemic, is slowing down as Trump's tariffs become heavier in the industry and new questions emerge about the future of AI.
Musk's EV company has been hit particularly hard, with stocks falling nearly 33% over the past month. But this appears to be driven, at least in part, by public backlash against masks' controversial role in the Trump administration, leading the government's efficiency.
