Tesla, whose CEO Elon Musk is a senior adviser to President Donald Trump, has wrote a letter to the the U.S. Trade Representative voicing concerns over retaliatory tariffs.
In recent weeks, Trump has fueled a trade war with Canada, Mexico and China by imposing tariffs on the U.S.’s largest trading partners. These countries have imposed retaliatory tariffs in response.
It’s not immediately clear if Musk, who as the Department of Government Efficiency boss has been carrying out mass layoffs and slashing government contracts, was involved in the letter. The Independent has reached out to Tesla for comment.
In the unsigned letter on Tesla letterhead, dated March 11, the electric vehicle manufacturer wrote to Ambassador Jamieson Greer about its concerns that it could be “exposed” to retaliatory tariffs.
“While Tesla recognizes and supports the importance of fair trade, the assessment undertaken by [the U.S. Trade Representative] of potential actions to rectify unfair trade should also take into account exports from the United States. U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions,” the letter said.
For example, the letter continues, “past trade actions by the United States have resulted in immediate reactions by the targeted countries,” including increased levies on electric vehicles imported into those countries.
Trump initially imposed 25 percent tariffs earlier this month against Mexico and Canada in an effort to curb the flow of drugs entering the U.S. He also announced an additional 10 percent tariff on China. This week, the president’s 25 percent tariffs on steel and aluminum imports took effect. Each of these levies has prompted the targeted countries to impose retaliatory tariffs.
Past tariff actions have raised Tesla’s costs for vehicles made in the U.S. and raised costs for those vehicles when exported from the U.S., resulting in a “less competitive international marketplace for U.S. manufacturers.”
The electric vehicle giant urged the U.S. Trade Representative to consider the “downstream impacts of certain proposed actions taken to address unfair trade practices.”
“Trade actions should not (and need not) conflict with objectives to further increase and support domestic manufacturing,” the letter added.
The letter comes the same day that the White House lawn transformed into a Tesla showroom. Trump and Musk sat inside a red Tesla Model S on the White House driveway Tuesday before the president announced he would buy the electric vehicle.
Earlier that day, Trump shared his plans in a Truth Social post: “I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American.”
Since Trump took office, shares in Tesla have plummeted by about 43 percent. Tesla products and owners have also been targeted since Musk has gotten close to Trump: charging stations have been torched, Tesla Cybertrucks have been vandalized, and protests against the electric vehicle company have cropped up across the country.