Tesla warned that both the company and other great American exporters are exposed to retaliation tariffs that could be imposed in response to the aggressive use of tariffs by President Donald Trump.
The CEO of the car manufacturer, Elon Musk, a close ally of Trump, has been leading the White House effort to reduce the size of the federal government. The billionaire leads the so -called government efficiency department.
“American exporters are inherently exposed to disproportionate impacts when other countries respond to US commercial actions,” Tesla said in a letter addressed to the office of the EU Commercial Representative (USTT, for its acronym in English).
“For example, past commercial actions by the United States have resulted in immediate reactions from affected countries, including the increase in tariffs on imported electric vehicles in those countries,” he added.
The document reflects the comments of many US companies concerned with Trump’s tariffs and stands out for being from Tesla. It is not clear who wrote the document, which is not signed but is in the company’s letterhead.
Tesla said it is important to ensure that the efforts of the Trump administration to address commercial problems “do not inadvertently harm US companies.”
The company expressed interest in avoiding reprisals such as those faced in previous commercial disputes, which resulted in an increase in tariffs on electric vehicles imported to countries subject to US tariffs.
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Trump is considering imposing significant tariffs on vehicles and parts made worldwide in early April.
Tesla warned that, even with an aggressive location of the supply chain, “certain pieces and components are difficult or impossible to obtain within the United States.”
The automobile manufacturer added that companies will “benefit from a gradual approach that allows them to prepare properly and ensure that appropriate measures are taken in the supply chain and regulatory compliance.”
Tesla did not immediately respond to a request for comments.
“As an American manufacturer and exporter, Tesla encourages USTR to consider the secondary impacts of certain proposed actions to address unfair commercial practices,” said the manufacturer in the letter dated Tuesday.
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Carive America cars, a commercial group that represents important foreign manufacturers such as Toyota, Volkswagen, BMW, Honda and Hyundai, warned the USTR in separate comments to impose “generalized tariffs will interrupt production in the US assembly plants.”
“Car manufacturers cannot change their supply chains overnight, and the increase in costs will inevitably lead to a combination of higher prices for consumers, less models offered and the closure of production lines in the US, which could lead to the loss of jobs throughout the supply chain,” he added.
With Reuters information
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