Tesla has warned that Donald Trump's escalating trade war could expose the company and other U.S. automakers to retaliatory tariffs.
In a letter to U.S. Trade Representative Jamieson Greer, the electric vehicle maker affirmed its support for fair trade but urged the administration to avoid policies that could unintentionally harm American businesses.
The company, led by Elon Musk, cautioned that previous trade disputes had resulted in increased tariffs on U.S. exports, particularly electric vehicles, in countries targeted by American trade actions. Tesla argued that U.S. exporters are especially vulnerable to retaliatory measures and urged policymakers to adopt a phased implementation of any new trade policies. This approach, the company suggested, would allow businesses to adjust supply chains and comply with evolving regulations.
Trump's tariff strategy has already prompted significant backlash from major trading partners. The European Union and Canada have imposed retaliatory tariffs following U.S. duties on steel and aluminum imports.
Meanwhile, Tesla's share price has fallen more than 30 percent over the past month, partly due to public backlash against Musk's controversial political remarks and public displays.
Despite growing concerns, Treasury officials maintain that Trump's trade policies will deliver long-term economic benefits. Still, with leading companies like Tesla raising alarms, the potential consequences of an extended trade war remain a critical issue for the global economy.
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April 10, 2026 16:21 ET Inflation data from the U.S. was the main data event this week as the conflict in the Middle East continue. The minutes of the latest Fed policy session and the survey data on the services sector also made headlines. In Europe, manufacturing orders data from Germany was in focus. Price data from China drew attention in Asia.