Elon Musk’s Tesla has raised concerns that Donald Trump’s ongoing trade war could lead to retaliatory tariffs against the electric vehicle manufacturer and other US automotive companies. In a letter to Jamieson Greer, the US trade representative, Tesla expressed support for fair trade, while urging the US administration to avoid inadvertently harming US companies.

Tesla emphasized the potential impact of the trade war on exports, highlighting that US exporters are disproportionately affected when other countries retaliate against US trade actions. The company cited previous instances where US trade actions led to increased tariffs on electric vehicles imported into countries targeted by the US.

Trump’s imposition of significant tariffs on vehicles and parts made worldwide has prompted the EU and Canada to announce large-scale retaliations against tariffs on steel and aluminum imports into the US. Tesla’s share price has seen a significant decline amid concerns over potential buyer backlash against Musk, who has been criticized for his support of far-right political parties and his actions at a conservative conference.

Tesla has also suggested that any potential trade actions should consider a phased approach to allow US companies to prepare and implement necessary adjustments to their supply chains and compliance measures. The company stressed the importance of a timeline for implementation to ensure a smooth transition and minimize disruption to US companies.

Source: https://www.theguardian.com/technology/2025/mar/14/tesla-trump-trade-war-harm-car-companies-elon-musk-tariffs