Tesla warned the Trump Administration that they could also face retaliatory duties.
Tesla, owned by Elon Musk, a donor and adviser to President Donald Trump, penned an unsigned note to the U.S. Trade Representative Office on Tuesday.
It continued, “U.S. Exporters are inherently vulnerable to disproportionate effects when other countries react to U.S. Trade Actions.”
Tesla also added, “For example, previous trade actions by the United States resulted in an immediate reaction by the targeted countries including increased tariffs for [electric vehicles] import into those countries. esla warned that tariffs may impact the supply chain because “certain parts and components are difficult or even impossible to source in the United States.”
Musk, the head of the Department of Government Efficiency in the Trump Administration, is heavily involved.
Several other automakers have warned against the addition of tariffs.
Autos Drive America (a trade group that represents major foreign automakers like Toyota, Volkswagen, and BMW) warned that “wide-based tariffs” would disrupt production in U.S. assembly facilities. They added that since automakers can’t move their supply chains overnight, “cost increases will lead to a combination of higher prices for consumers, fewer models available to them, and the shutdown of U.S. manufacturing lines, potentially leading to job losses throughout the supply chain.”
