Tesla are getting worried that they could see rising costs
Tesla have pleaded with Trump administration to reconsider tariffs that could potentially harm the electric car company.
Despite Elon Musk being dubbed the “First Buddy” in the White House (a title that remains somewhat mysterious), his companies may not be reaping the rewards of Donald Trump’s tariffs.
Since taking office, Trump has waged trade wars with key US allies, including Canada, Mexico, and the European Union. While Trump maintains that these moves will ultimately benefit American citizens and businesses, some concerns have started to surface. Tesla, Musk’s flagship company, has now sent a letter to the administration urging them to reconsider tariffs that could harm their operations.
In an unsigned letter addressed to US Trade Representative Jamieson Greer, Tesla expressed concern that the ongoing disputes with Mexico and Canada could drive up the cost of metals crucial for automakers, potentially putting a strain on the industry.
Uploaded to the public comment portal for Greer by one of Tesla’s lawyers on Tuesday, the letter raised concerns that the administration’s tariff decisions could “inadvertently harm U.S. companies.”
The letter further stated: “U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions.”
It continued: “For example, past trade actions by the United States have prompted immediate retaliatory responses from targeted countries, including increased tariffs on EVs imported into those countries.”
As a U.S. manufacturer and exporter, Tesla urged the USTR to carefully consider the downstream effects of proposed actions intended to combat unfair trade practices. Tesla’s concerns are hardly surprising, as the company is currently facing an alleged boycott, adding to the pressure it is under.
Tesla’s share price has plummeted by 40 percent since the beginning of the year. While some speculate that Elon Musk’s declining popularity, partly due to his ties with Trump, is the culprit, market analysts are pointing to different factors.
The price drop is more closely tied to concerns over Tesla’s ability to meet production targets and a noticeable decline in sales over the past year. However, Tesla isn’t the only company expressing worries. Autos Drive America, a trade group representing major automakers like Toyota, Volkswagen, BMW, Honda, and Hyundai, has also raised alarms about the impact of broad-based tariffs, warning that they will disrupt production at U.S. assembly plants.
The group stated: “Automakers cannot shift their supply chains overnight, and cost increases will inevitably lead to higher consumer prices, fewer models available to consumers, and the potential shutdown of U.S. production lines, which could result in job losses throughout the supply chain.”
