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Tesla, CEO Elon Musk, senior adviser to President Donald Trump, has written a letter to US trade representatives expressing concern over retaliatory tariffs.
In recent weeks, Trump has fostered a trade war with Canada, Mexico and China by imposing tariffs on the largest US trading partner. These countries are leviing retaliatory tariffs accordingly.
It is not immediately clear whether Musk, who has implemented massive layoffs and cut government contracts as the boss of the government’s efficiency department, was involved in the letter. The independent contacted Tesla for comment.
In an unsigned letter dated March 11th regarding Tesla Letterhead, the electric car maker wrote to Ambassador Jamie Songlia about concerns that he could be “exposed” to retaliation tariffs.
“While Tesla recognizes and supports the importance of fair trade, we should also consider exports from the US, as valuations made by the potential actions (US trade representatives) to correct unfair trade. US exporters are inherently exposed to disproportionate effects when other countries respond to US trading behavior,” the letter states.
For example, the letter continues, “Past trade actions by the United States have led to immediate responses by the target countries.” This includes increasing taxation on electric vehicles imported into those countries.
Trump initially imposed a 25% tariff on Mexico and Canada earlier this month to curb the flow of drugs entering the US. He also announced an additional 10% tariff on China. This week, tariffs on the President’s 25% steel and aluminum imports came into effect. Each of these taxes urged target countries to impose retaliatory tariffs.
Past tariff actions have raised the costs of Tesla for vehicles made in the US, increasing the costs of these vehicles when exported from the US, making it a “competitive international market for US manufacturers.”
The electric vehicle giant has urged US trade representatives to consider “downstream effects of certain proposed actions taken to address unfair trade practices.”
“Trade measures should not be at odds with (and not necessary) the goals to further improve and support domestic manufacturing,” the letter added.
The letter comes on the same day that the White House lawn transformed into a Tesla showroom. Trump and Musk were sitting inside a red Tesla model in the White House driveway before the president announced Tuesday that he would buy an electric vehicle.
Earlier that day, Trump shared his plans in a true social post. “I’m going to buy a brand new Tesla tomorrow morning, as a show of confidence and support for truly great American Elon Musk.”
Since Trump took office, Tesla shares have plummeted about 43%. Tesla products and owners have been targeted since Musk approached Trump. Charging stations were torched, Tesla Cybertrucks were destroyed, and protests against electric vehicle companies were born nationwide.
