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Tesla against Trump: Tariff policies will have unpredictable consequences
2025-03-14 15:24:35 / BOTA
The close relationship between Donald Trump and American tycoon Elon Musk is heading for a collision. Electric car manufacturer Tesla, led by Trump confidant Elon Musk, has warned the US government about the potential negative consequences of punitive US tariffs on the company.
Previous additional tariffs had partly increased Tesla's own costs for manufacturing in the US, according to a letter to US Trade Representative Jamieson Greer.
In addition, vehicles have become more expensive abroad, which has weakened their competitive position in the market.
Tesla also noted that U.S. companies are more quickly affected by countermeasures from other countries in trade wars. “ U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade measures ,” Tesla said in the letter.
Additional tariffs imposed by US President Donald Trump have already sparked a backlash from Canada and the European Union.
The letter to the Office of the U.S. Trade Representative further emphasized that it was important to ensure that the Trump administration's efforts to resolve trade issues do not inadvertently harm American companies. The letter, dated Tuesday, is one of hundreds sent to the office by companies regarding U.S. trade policy.
Tesla also noted that some components and raw materials would inevitably have to be purchased from abroad, even for production in the US.
“ Trade actions should not (and should not) conflict with the goal of expanding and supporting domestic production ,” the unsigned letter dated March 11th said.
Tesla also has factories in China and in Grünheide near Berlin. The Financial Times, citing a person involved, wrote that the letter was left unsigned " because no one at the company wanted to get fired for sending it ."
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