Tesla Warns of Retaliatory Tariffs Impacting U.S. Exports
Tesla has cautioned that potential retaliatory tariffs against American manufacturers could negatively impact its operations, urging the U.S. government to carefully evaluate its trade policies.
In a March 11 letter to U.S. Trade Representative Jamieson Greer, the electric vehicle (EV) giant emphasized the importance of fair trade but warned that trade measures aimed at addressing unfair practices should also consider their impact on U.S. exports.
“While Tesla recognizes and supports the importance of fair trade, the assessment undertaken by USTR of potential actions to rectify unfair trade should also take into account exports from the United States,” the letter stated.
Tesla pointed to previous U.S. tariff policies that prompted swift retaliatory actions from affected countries, leading to higher import tariffs on American-made EVs. The company noted that such measures have raised costs for U.S. manufacturers and created challenges for American firms exporting vehicles and components.
The automaker also urged the USTR to address supply chain limitations, particularly in the EV and lithium-ion battery sectors, arguing that some key materials cannot be sourced domestically.
Tesla, which employs over 70,000 workers across its U.S. facilities, manufactures EVs and battery components at several locations, including Fremont, California; Austin, Texas; Sparks, Nevada; Buffalo, New York; and Grand Rapids, Michigan.
The company’s warning comes amid a broader decline in Tesla’s stock value and a 45% drop in European sales in January, according to industry reports. As trade tensions remain high, Tesla has urged U.S. officials to explore policies that safeguard American manufacturers while preventing economic fallout.
