Tesla (NASDAQ: TSLA) has raised alarms over former President Donald Trump’s aggressive trade agenda, warning that new tariff hikes could provoke retaliatory measures targeting U.S. electric vehicles (EVs) and disrupt global market dynamics.
In a letter to the Office of the U.S. Trade Representative, Tesla stressed that despite strides in localizing its supply chain, some critical components remain difficult to source exclusively from the U.S.. The company urged policymakers to adopt a phased, cautious approach to avoid unintended consequences.
Tesla emphasized that uncoordinated trade actions could raise costs and harm the competitive position of American automakers in global EV markets.
Similar concerns were echoed by Autos Drive America, a trade group representing major foreign automakers like Toyota (NYSE: TM) and Volkswagen (ETR: VOWG_p). The group warned that broad-based tariffs could lead to higher prices for consumers, fewer vehicle choices, and potential job losses in U.S. manufacturing.
Trump is expected to announce his decision on new vehicle and auto parts tariffs in early April, a move that may reshape the future of cross-border auto trade.