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Elon Musk’s electric car manufacturer, Tesla, warned it and other US exporters could be harmed by countries that retaliate to Donald Trump’s commercial rates.
Musk is a nearby ally of the president of the United States and leads efforts to reduce the size of the federal government.
But in an unpleasant letter addressed to the United States commercial representative, Tesla said that while “supporting” fair trade, American exporters were “exposed to disproportionate impacts” if other countries retaliate to tariffs.
The letter was dated the same day as Trump organized an event at the White House where he promised to buy a Tesla in a sample of support for Mr. Musk.
It is not clear who in Tesla wrote the letter, since it is not signed, or if Mr. Musk was aware.
The price of Tesla shares has dropped 40% since the beginning of the year. Musk is the executive director of the automobile manufacturer and, although some have argued that his alignment with the Trump administration is harming his brand, market analysts say that the fall in shares is more about concerns about the production objectives of Tesla meetings and a fall in sales during the past year.
In the letter, Tesla said he was making changes in his supply chains to find so many local suppliers for their cars and batteries, so it depended less on foreign markets.
“However,” he warned, “even with the aggressive location of the supply chain, certain parts and components are difficult or impossible to obtain within the United States.”
The president of the United States has imposed an additional rate of 20% to all imports from China, which led Beijing to respond with retaliation levies, including cars. China is Tesla’s second largest market after the United States.
“For example, the past commercial actions of the United States have resulted in immediate reactions by the target countries, including the largest tariffs on electric vehicles imported to those countries,” says the letter.
The EU and Canada have threatened radical reprisals for the rates of steel and aluminum imports to the US, which entered into force earlier this week.
The protesters have attacked the Tesla exhibition rooms in recent weeks in protest against the Musk cost reduction role in the Trump administration, where he is head of the Government Efficiency Department (Doge).
Earl this week, Trump organized an event at the White House Where he said that people who protest against Tesla should be labeled as domestic terrorists, while sitting in the driver’s seat of a new red tesla that said he planned to buy.
Trump said the protesters were “damaging a large American company”, and anyone who used violence against the electric car manufacturer “would go through hell.”
