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Tesla warns of negative consequences due to Trump tariffs
The electric car manufacturer Tesla, led by Trump confidant Elon Musk, warns the US government of possible negative consequences of American tariffs for the company. Due to previous additional tariffs, Tesla's production costs in the USA have partially increased, it said in a letter to US Trade Representative Jamieson Greer. Furthermore, the vehicles have become more expensive abroad, which has weakened their competitive position in the market.
Tesla also pointed out that US companies are quickly affected by countermeasures from other countries during trade wars. The additional tariffs imposed by US President Donald Trump have already triggered counterreactions from Canada and the European Union, among others.
Advice to US Government
Furthermore, Tesla pointed out that certain components and raw materials would inevitably have to be sourced from abroad, even when manufacturing in the USA. "Trade actions should not (and need not) conflict with the goal of expanding and supporting domestic production," stated the unsigned letter dated March 11. Tesla also has plants in China and in Grünheide near Berlin.
The "Financial Times" wrote, citing a participant, that the letter remained unsigned "because no one at the company wanted to be fired for having sent it."
Tesla CEO Musk donated over $250 million to Trump's campaign and became a close confidant of the US President. Trump tasked him with reducing government costs. Rapid cuts in expenses and jobs at agencies brought Musk under criticism. At the same time, Tesla's stock price fell because analysts lowered their sales forecasts for the company. Trump then demonstratively purchased a Tesla vehicle at a sales show in front of the White House this week.
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