Tesla CEO Elon Musk is warning that his company and other major American exporters could face retaliatory tariffs if US President Donald Trump imposes significant trade restrictions. The automaker has expressed concerns about the potential impact on its supply chain, citing difficulties in sourcing certain parts and components domestically.
In a letter to the US Trade Representative’s Office, Tesla urged caution against actions that “inadvertently harm U.S. companies”. It noted that past trade actions by the US have led to immediate reactions from targeted countries, resulting in increased tariffs on electric vehicles imported into those nations.
Despite efforts to localize its supply chain, Tesla warned that certain components are difficult or impossible to source within the US. The company suggested a phased approach to ensure a smooth transition and minimize disruption to production.
A trade group representing major foreign automakers has also voiced concerns about the impact of broad-based tariffs on US assembly plants. It warned that such measures would lead to higher consumer prices, reduced model offerings, and potential job losses across the supply chain.
Source: https://nypost.com/2025/03/13/business/elon-musks-tesla-warns-it-could-face-retaliatory-tariffs-from-trumps-aggressive-actions