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Day of Trump's Second Term

“Elon Musk’s Tesla Issues Warning on Export Retaliation Amid New Trump Tariffs”

March 14, 2025
Tesla, led by Elon Musk, warns of export retaliation due to new Trump tariffs
From

Elon Musk’s Tesla Inc. has raised concerns about potential retaliation in the export market due to President Trump’s aggressive tariff policies. In a letter to U.S. trade representative Jamieson Greer, Tesla highlighted the vulnerability of U.S. exporters to the impacts of trade actions by other countries in response to the U.S. tariffs. The company emphasized that these tariffs have strained relationships with key allies and disrupted global markets.

Despite Elon Musk’s previous alignment with more liberal views, he has emerged as a staunch supporter of President Trump, aligning with the administration’s nationalistic agenda. The close alliance between Musk and Trump, though unexpected given Trump’s past criticisms of electric vehicles, has become notable.

Tesla’s letter to Greer also addressed the challenges in fully procuring components domestically, particularly lithium-ion batteries, even with efforts to manufacture products in the U.S. The company expressed support for evaluating domestic supply chain limitations to prevent trade actions from hindering U.S. manufacturers and imposing cost-prohibitive tariffs on essential components.

The letter called for a balance between trade actions and supporting domestic manufacturing, emphasizing the importance of not impeding U.S. manufacturing jobs. Trump’s trade policies have already triggered retaliatory tariffs affecting various American products, and Tesla’s concerns reflect broader implications for the U.S. economy and international trade relations.

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