Tesla Warns Trump Administration In An Unsigned Letter That Tariffs Will Hurt It
- Nobody at Tesla wants to get fired for sending the letter, so they reportedly left it unsigned.
- Tesla says it is difficult to source certain parts and components within the US.
- The carmaker has been overhauling its global supply chain in recent months.
While Elon Musk has proven to be a valuable asset to President Donald Trump in more ways than one, even Tesla sees the writing on the wall when it comes to the ongoing trade war. The electric vehicle manufacturer sent a letter to U.S. Trade Representative Jamieson Greer, warning about the impact retaliatory tariffs could have on production costs.
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In the letter, dated March 11, Tesla called on Greer to “further evaluate domestic supply chain limitations” in an effort to shield US manufacturers from the fallout of the trade conflict. Interestingly, the letter was unsigned, with an unnamed source telling reporters that the omission was due to the fact that “nobody at the company wants to be fired for sending it.”
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“As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices,” the letter reads. “Even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the US.”
Tariffs are not just impacting Tesla locally in the United States. Many of the EVs it builds in the US are exported to Canada, and it’s already been forced to raise prices in the Great White North in response to the tariffs.
Tesla added that tariffs will impact the cost of making vehicles in the US and make them less competitive after being exported internationally. The letter also urged Trump’s administration not to make it more expensive to import materials like lithium and cobalt into the United States, particularly given they are in short supply in the US.
According to The Financial Times, Tesla has been changing its global supply chain in recent months, trying to build and source as many materials and components from the US as it can.
Only time will tell if pressure from companies like Tesla will encourage Trump to relent on his pro-tariff policies, but that seems unlikely, particularly since he has talked about them in such glowing terms since returning to the Oval Office.
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