With several other American companies, Elon Musk's electric vehicle company Tesla has affiliated concerns regarding retaliation tariffs that result from a trade war fired by President Trump.
In signless letter Tesla warned Tesla on Tesla Letterhead, who was aimed at the US trade representative, that Trump's measures to “treat unfair trade practices”, “US companies could accidentally harm”.
Trump imposed a tariff of 25% on goods from Canada and Mexico to “reduce the threat from illegal foreigners and drugs,” said one Fact leaf of the White House. The tariffs have triggered a trade war that threatens to increase the costs for a number of consumer goods.
At the beginning of this month, a trading group said almost all major car manufacturers with the exception of Tesla that the tariffs in Canada and Mexico could lead to drastic price applications and disorders of the supply chain. Reuters reported.
Tesla's letter, which was published on the US trade representative's website, said that former US tariffs have led to increased costs for domestic production and increased tariffs for electric vehicles that were exported abroad.
“Us exporters are naturally exposed to disproportionate effects when other countries react to US trade actions,” says Tesla's letter. “Tesla encourages the USTR to take into account the downstream effects of certain proposed measures.”
A representative of Tesla from Austin, Texas, could not be reached immediately for a comment.
Tesla's message to the US trade representative is remarkable because the company's managing director, Musk, is a close ally of Trump and leads the efforts of the so-called Department of Government efficiency to reduce the federal government. In a show of support for Musk and Tesla at the beginning of this week, Trump bought a new red model on the lawn of the White House.
Tesla's share, which has dropped by 34% since January, received a thrust after Trump's vehicle purchase and rose by almost 4% at the end of the day on Friday and closed $ 249.98.
The letter comes, since some Tesla owners protest against Musk's political actions by selling their vehicles or adding their trips against auto-car car stickers.
Some politicians and celebrities, including Senator Mark KellyA Democrat from Arizona has publicly shared plans to get rid of her Tesla vehicles.
Tesla institutions in the United States support more than 70,000 employees and are responsible every year for billions of dollars, according to the letter. The company has several production sites in California, including a assembly plant in Fremont and a “mega factor” in Lathrop.
Tesla's letter also warned of problems of the supply chain that could result from existing and proposed trade policy.
“Even with aggressive localization of the supply chain, certain parts and components in the United States are difficult or impossible to obtain,” says the letter. “Commercial measures should (and do not have to be with the goals that do not have to conflict in order to further increase and support domestic prefabrication.”
The trade group Autos Drive America, the foreign car manufacturers, including Toyota and BMW, represents the US trade representative in separate comments that the imposition of broad tariffs would disturb production in US systems and lead to higher prices for consumers.