Tesla has cautioned that Donald Trump’s trade war could expose the electric carmaker to retaliatory tariffs, which might also affect other automotive manufacturers in the US. In a letter to Jamieson Greer, the US trade representative, Tesla expressed support for fair trade but urged the administration to avoid inadvertently harming US companies. As a US manufacturer and exporter, Tesla encourages the Office of the United States Trade Representative (USTR) to consider the downstream impacts of certain proposed actions addressing unfair trade practices. Tesla highlighted that US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions. For example, past trade actions by the US have led to immediate reactions by targeted countries, including increased tariffs on electric vehicles imported into those countries. Trump has imposed significant tariffs affecting vehicles and parts globally. The EU and Canada have announced large-scale retaliations for tariffs on steel and aluminum imports into the US. Tesla’s share price has fallen by more than a third over the last month. Tesla also suggested that as USTR continues to evaluate possible trade actions, consideration should be given to the timeline of implementation, enabling US companies to prepare accordingly. Separately, BMW reported a 37% fall in net profits to €7.68bn in 2024, warning of the potential impact of US trade tariffs. BMW’s forecasts account for all tariffs imposed up to 12 March, including levies on steel and aluminum, a 20% tariff on China, and 25% on Canada and Mexico. — news from The Guardian
