- The Trump administration says imposing tariffs on trading partners is a way to reduce the US trade deficit.
- Tesla General Director Elon Musk has been a main supporter of Trump, but a trade war will increase costs for her cars.
- In one letter, the company urged the US government to ensure that the trade war does not inadvertently harm US companies. “
Tesla has warned the Trump administration that it can hold the cost of the president’s efforts to impose so -called revenge fees on US trade partners.
In a signed letter loaded in a regulatory bank on March 11, the automobile said a trading war could increase costs for its vehicles and bring other countries to hit tariffs in Tesla vehicles made in Austin or electronic equipment in countries such as California and Nevada.
“Special tariff actions in the US have increased costs for Tesla for vehicles manufactured in the United States, and increased costs for the same vehicles when exported by the United States, resulting in less competitive market for US producers,” the company wrote.
Elon Musk, Tesla’s General Director, has been named a “Special Government employee” who has been closely linked to Donald Trump’s push to shrink and automate the federal government. The letter underlines how his political interests and his business interests can change.
Tesla’s shares pricing has fell for nearly half Since its roof of December. Musk said earlier during the week he was having a hard time running his businesses Due to his involvement with the White House office Doge.
“Tesla supports a strong and complete process to collect information to provide appropriate actions to address unfair trading practices and which, in the process, do not inadvertently harm US companies,” the letter said, which was previously reported by Financial Times.
The fact that the letter was not signed may be unusual, but it is not unprecedented for Tesla, which has previously presented comments to the IRS without a signature at the end. The letters he presented to other agencies included signatures.
Tesla, Musk and the White House did not respond to the Business Insider request for comment.
The letter was loaded in a Public comment portal For the US trade representative on March 11 by an internal lawyer in Tesla. Is embedded below.
The paper was sent on the same day Trump invited Musk and a teslas lineup on the southern lawn of the White House for a publicity. Trump said he would buy a Tesla to show his support for Musk and his company after acts of trade vandalism.
The lit tariff threats in Canada and Mexico could take big strikes for America’s largest automobiles.
Barclays analysts wrote in a March 5th note that a 25% tax from Canada and Mexico can delete profits for Ford, GM and Stellantis, assuming there is no price increase or adjustment in production plans.
“If you look at the tariffs, let’s be honest sincere, long -term, a 25% fee throughout Mexico and the Canadian border would blow a hole in the American industry we’ve never seen,” said Ford Jim Farley in February.
Tesla will also feel the effects, taking into account 20-25% of the ingredients for its 2025 2025 vehicles coming from Mexico, according to a national registration of the traffic safety administration on the highway.
“There is a lot of uncertainty about tariffs,” said the main financial officer of Tesla Vaibhav Tanja in a January 29 income call. “Over the years, we have tried to locate our supply chain in every market, but we are still supported by parts from all over the world for all our businesses. Therefore, the imposition of tariffs, which is most likely, and everything will have an impact on our business and profession.”