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Tesla Raises Concerns Over Trade Policies’ Impact on U.S. Electric Vehicle Industry
Tesla, led by Elon Musk, has issued a significant alert regarding the potential repercussions of former President Donald Trump’s trade policies, particularly emphasizing that these tariffs could jeopardize the future of American electric vehicle (EV) manufacturers, resulting in job losses and broader economic implications.
In a recent letter addressed to the U.S. Trade Representative (USTR), Tesla articulated its concerns that the tariffs enacted could raise manufacturing costs for EVs produced in the United States. Additionally, the company highlighted that retaliatory tariffs from other countries could further inflate export costs.
The letter conveyed Tesla’s endorsement for a robust evaluation of “unfair trade practices” but underscored the importance of ensuring that such actions do not inadvertently damage domestic companies. The carmaker urged the USTR to take into consideration the downstream effects of proposed measures aimed at correcting trade imbalances.
Tesla pointed out that the ongoing trade process might threaten the jobs of its workforce, which exceeds 70,000, and could lead to overall job reductions and decreased revenues within the U.S. automotive sector. The company warned that supply chains would likely experience disruption, stating that sourcing all necessary components from American suppliers is currently “impossible.”
“Even with an aggressive localization strategy, some parts are challenging or unfeasible to procure within the United States,” the letter mentioned, urging the USTR to assess limitations within the domestic supply chain.
If current trade policies remain as is, Tesla cautioned that the U.S. could be at a competitive disadvantage in the global automotive market. The company recommended that the USTR should proactively investigate methods to sidestep such pitfalls in future trade actions.
Looking ahead, Tesla stressed the need for the USTR to acknowledge how the ongoing trade conflict could adversely affect U.S. exporters, noting that they are particularly vulnerable to the repercussions when other nations react to U.S. trade decisions.
Source
arstechnica.com