Tesla Warns of Potential Retaliatory Tariffs

Tesla, the electric car company led by Elon Musk, cautioned this week that retaliatory tariffs against U.S. manufacturers could harm its operations.

Musk’s Tesla has enjoyed a high profile under the Trump administration, which has made tariffs a central part of its economic strategy. I Photo: Tesla X

The company urged the U.S. government to carefully evaluate its trade policies—a position that contrasts with the stance of Musk’s ally, President Donald Trump, Ramishah Maruf reported for CNN.

In a letter to U.S. Trade Representative (USTR) Jamieson Greer, Tesla representatives wrote: “As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices. 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 U.S.”

Tesla warned that past U.S. tariff measures have led to “immediate reactions” from affected countries, including increased tariffs on electric vehicles (EVs) imported into those markets.

The letter was unsigned.

Musk’s Tesla has enjoyed a high profile under the Trump administration, which has made tariffs a central part of its economic strategy. Recently, the president even posed in front of a fleet of Teslas, stating that he would purchase one at full price.

However, Tesla shares have slumped sharply in recent weeks, wiping out their post-Election Day gains.

The company’s European sales fell 45% in January, according to the European Automobile Manufacturers’ Association (EAMA). Despite Musk’s close ties to the administration, he remains a polarizing political figure.

Tesla shares closed down 3% at one point in recent trading.