Electric vehicle maker Tesla is warning that the Trump administration’s trade policies could be detrimental to U.S.-based EV companies.
In an unsigned March 11 letter to the Office of the United States Trade Representative (USTR), the company — owned by billionaire Elon Musk, who is currently a special adviser to President Trump — encouraged the administration to consider how its trade policy could “harm” domestic automakers like Tesla.
“As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices,” Tesla wrote.
The company raises concerns over retaliatory tariffs against the U.S. that would make their vehicles more expensive, and could dent overseas demand. President Trump increased tariffs on all steel and aluminum imports to 25% on Wednesday, claiming they would help create U.S. factory jobs.
The European Union quickly announced it would retaliate with steps that will take effect April 1.
The U.S. previously imposed levies of 25% on Canada and Mexico, which automakers warned could drive up the cost of cars by thousands of dollars.
President Trump has tapped Musk, the CEO of Tesla, to lead the White House’s Department of Government Efficiency, or DOGE, established to slash federal spending, in part by culling the federal workforce. DOGE has abruptly terminated thousands of federal workers over the past three weeks, causing turmoil across multiple agencies.
Tariffs could pose undue burden
In the letter, Tesla underscored its commitment to investing in a domestic supply chain, including by building battery manufacturing and processing facilities stateside. But the company highlighted the complexity of the automobile supply chain, and urged the USTR to consider how companies like Tesla could be “unduly burdened by trade actions” taken by the White House.
President Trump has claimed that the tariffs will spur more domestic manufacturing and create jobs for Americans, while Tesla argues in the letter that “even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the United States.”
Tesla sent the letter to USTR the same day President Trump said on social media that he would purchase a Tesla to support Musk and his company’s slumping stock.
Some buyers have been turned off by Musk’s political actions, which appear to be weighing on the company’s sales both in the U.S. and abroad.
