Amid tarrif war elon musks tesla warns trump administration saying Risk of retaliation may increase

Tesla warns trump administration: Expressing concern over the tariff policy of US President Donald Trump, Tesla of Alan Musk has warned the administration that this may increase the cost of vehicle manufacturing in the US and the company may become a victim of business vengeance.

Tesla sent a letter to American trade representative Jamison Greer warned that American exporters are sensitive to the counter -impacts of trade policies of other countries. Confirming the support of the fair trade in the letter, Tesla wrote, “American exporters can naturally come under the impact of trade steps taken by other countries. Due to the former American trade policies, many countries have increased tariffs on electric vehicles (EV).”

Trump administration and trade war
Actually, this letter from Tesla has come at a time when a trade war continues between the US and its European colleagues as well as Canada. According to the Financial Times, Tesla has tried to focus on “Bipolar Tariff Regime” through this letter.

Demand for tariff reconsideration on lithium and cobalt
Tesla in the letter demanded review of tariffs on important materials such as lithium and cobalt, which are already short in the US. The company, citing its efforts to strengthen the local supply, said that despite these efforts, some essential components are finding it difficult to get at the domestic level.

Appeal for revaluation on American trade policies
The letter appealed to the US Trade Representative Greer to revaluate the domestic supply chain boundaries so that the unnecessary burden of business policies does not fall on the American manufacturers. Tesla insisted that increasing tariffs in the US will increase the cost of the required components, which will negatively impact the industry.

Part of the USTR review process
Tesla’s letter was part of the process of seeking feedback on trade policies from American companies on behalf of US Trade Representative (USTR). Earlier too, Tesla had sent similar letters to the Trump administration when comprehensive tariffs were implemented. On March 11, this letter was uploaded on the USTR website on behalf of Tesla’s Associate General Counsel Mirium Ekab.

Close relationship between Tesla and Trump
Alan Musk, who is the world’s richest person, has been associated with Trump for a long time. Musk has spent more than $ 250 million to support Trump’s re -election campaign. However, Tesla has recently faced challenges. The company’s shares have declined by 40%, due to a decrease in sales and global economic instability. In Europe, some consumers are unhappy with the political trend of Musk, affecting Tesla’s sales.

Trump’s support to Musk
Trump has continued to support his close aide Musk. At an event held at the White House recently, he praised Tesla and called Musk a “great American”. To show his support, Trump also bought a red Tesla model S sedan.