Elon Musk's electric vehicle company, Tesla, has joined several other American companies in raise concerns about reprisals This could result from a trade war fed by President Trump.
In a not signed letter The Tesla header addressed to the American trade representative, Tesla warned that Trump's actions to “fight unfair commercial practices” could “inadvertently harm American businesses.”
Trump imposed a 25% price on Canada and Mexico goods in order to alleviate the “threat posed by illegal foreigners and drugs”, according to a White House Information Sheet. The prices have triggered a trade war which threatens to increase the cost of a number of consumer goods.
Earlier this month, a commercial group representing almost all major car manufacturers, except that Tesla, said that prices in Canada and Mexico could cause drastic price increases and supply chain disruption, Reuters reported.
Tesla's letter, published on the website of the US trade representative, said that the past tariff actions of the United States have led to an increase in domestic manufacturing costs and an increase in prices on electric vehicles exported to foreign countries.
“American exporters are intrinsically exposed to disproportionate impacts when other countries react to American commercial actions,” said Tesla's letter. “Tesla encourages the USTR to consider the impacts downstream of certain proposed actions.”
A Tesla representative, based in Austin, Texas, could not be immediately joined to comment.
Tesla's message to the US trade representative is notable because the director general of the company, Musk, is an ally of a nearby Trump and directs the efforts of the so-called Ministry of Government to reduce the federal government. In a demonstration of support for Musk and Tesla this week, Trump bought a new Red Model S on the lawn of the White House.
Tesla's action, which has dropped 34% since January, received a boost after buying Trump vehicles and increased by almost 4% at the end of the day on Friday, closing to $ 249.98.
The letter comes like some The owners of Tesla protest against the political actions of Musque By selling their vehicles or adding anti-muscs stickers to their rides.
Some politicians and celebrities, Including Senator Mark KellyAn Arizona Democrat, has publicly shared plans to get rid of their Tesla vehicles.
In the United States, Tesla facilities support more than 70,000 employees and are responsible for billions of dollars in economic activity each year, according to the letter. The company has several manufacturing sites in California, including an assembly factory in Fremont and a “megofactory” in Lathrop.
Tesla's letter also warned against supply chain problems that may result from existing and proposed trade policies.
“Even with an aggressive location of the supply chain, certain parts and components are difficult or impossible to source in the United States,” said the letter. “Commercial actions should not (and do not need) to confront objectives aimed at increasing and supporting interior manufacturing.”
The Trade Group Autos Drive America, which represents foreign car manufacturers, including Toyota and BMW, warned the US trade representative in separate comments according to which imposing general prices would disrupt production in American factories and lead to higher prices for consumers.
