# Tesla tells US government Trump trade war could ‘harm’ EV companies

Letter from Elon Musk’s firm to US trade representative warns of ‘downstream impacts’ of tit-for-tat tariffs

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Fri 14 Mar 2025 06.35 EDT First published on Fri 14 Mar 2025 05.08 EDT

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Elon Musk’s Tesla has warned that Donald Trump’s trade war could expose the electric carmaker to retaliatory tariffs that would also affect other automotive manufacturers in the US.

In an unsigned letter to Jamieson Greer, the US trade representative,  said it “supports fair trade” but that the US administration should ensure it did not “inadvertently harm US companies”.

The company, led by Musk, a close Trump ally who is leading , said it wanted to avoid a similar impact to previous trade disputes that resulted in increased tariffs on electric vehicles imported into countries targeted by the US.

Tesla said: “US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions. The assessment undertaken by USTR of potential actions taken to rectify unfair trade should also take into account exports from the United States.

“For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on electric vehicles imported into those countries.”

Trump has imposed significant tariffs that will affect vehicles and parts made around the world.

The EU and Canada have  for tariffs on steel and aluminium imports into the US, while the UK has so far held off on announcing any countermeasures.

Tesla’s share price has fallen by more than a third over the last month in an apparent , who has  for Germany’s far-right Alternative for Deutschland party, theatrically brandished a  at a conservative conference, and accused the British prime minister, Keir Starmer, and other senior politicians of .

This week Trump said he was  and blamed “radical left lunatics” for “illegally” boycotting the EV company – a day after Tesla’s worst share price fall in almost five years.

Tesla said: “As USTR continues to evaluate possible trade actions to rectify unfair trade practices, consideration should also be given to the timeline of implementation. US companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken.”

Separately on Friday, the German carmaker  reported that net profits slumped more than a third last year, as the owner of Mini and Rolls-Royce Motor Cars warned of the potential impact of US trade tariffs.

The company reported a 37% fall in net profits to €7.68bn (£6.4bn) in 2024, and expects an earnings margin for cars of 5% to 7% this year.

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