Tesla warned the U.S. government that the ongoing trade war initiated by Donald Trump threatens to cause significant harm to American electric vehicle manufacturers. Tesla sent an official letter to U.S. Trade Representative Jamieson Greer, which requested policymakers to avoid actions that would unintentionally damage American businesses.
Without any signature, Tesla sent the letter to express concerns about fair trade practices while warning against potentially damaging trade retaliations. The company noted that previous trade conflicts resulted in elevated import tariffs for American EVs, which diminished their international market competitiveness. Tesla predicted that fresh trade measures would create similar disadvantages for U.S. exporters through retaliatory foreign government actions.
The United States has started enforcing heavy vehicle and parts import tariff policies that resulted in counteractions from major trading partners, including the European Union and Canada. The United Kingdom remains without any implemented trade barriers. The automotive sector shares Tesla’s deep worry regarding the permanent effects that trade policies will have on both supply chain operations and profits globally.
The USTR received a request from the letter to adopt a gradual implementation approach for trade measures, which would provide American businesses with time to adapt their supply chain networks and compliance procedures. The stock value of Tesla has experienced a major downturn during the last month as the company pushes for a measured approach. Negative investor sentiment grew after CEO Elon Musk made controversial statements in his recent public political role.
BMW disclosed a 37% decrease in their 2024 net profits because of trade uncertainties and weakening EV market demand. The EV industry now faces rising global trade challenges that make Tesla’s warnings about the situation more important than ever.
