Tesla has warned that Donald Trumpâs trade war could expose the EV carmaker to retaliatory tariffs that would also affect other automotive manufacturers in the US.
The company, led by Musk, a close Trump ally who is leading efforts to downsize the federal government.
In an unsigned letter to Jamieson Greer, the US trade representative, Tesla said it âsupports fair tradeâ but that the US administration should ensure it did not âinadvertently harm US companiesâ.
Investors are concerned as Tesla’s market value 50% down from its December peak – a loss of about ÂŁ800bn.
Tesla said in the letter: âAs a US manufacturer and exporter, Tesla encourages the Office of the United States Trade Representative (USTR) to consider the downstream impacts of certain proposed actions taken to address unfair trade practices.â
Tesla added: âUS exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions. The assessment undertaken by USTR of potential actions to rectify unfair trade should also take into account exports from the United States.
âFor example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on electric vehicles imported into those countries.â
Demonstrators have targeted Tesla showrooms in recent weeks in protest against Elon Musk’s cost-cutting role in Trump’s administration, where he is head of the Department of Government Efficiency (Doge).
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