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Elon Musk-owned Tesla has sent an unsigned letter to Donald Trump’s top trade representative warning that the company could be harmed by the president’s tariff war.
The Tesla CEO has earned the nickname of ‘First Buddy’ since joining Trump on the campaign trail in July, with the president rewarding Musk’s presence – and millions in donations – with a special White House role.
However, Musk’s company appears to have informed US Trade Representative Jamieson Greer that the president’s trade war with Canada and Mexico is bad for business.
The tariffs will likely drive up costs for American companies that use the metals, such as automakers.
The unsigned missive was uploaded to the public comment portal for Greer by one of Tesla’s in house lawyers.
Tesla often leaves its public comments unsigned, though many will speculate if Musk had anything to do with it given his tight relationship with Trump.
The automaker said it is important to ensure that the Trump administration’s efforts to address trade issues ‘do not inadvertently harm U.S. companies.’
Elon Musk-owned Tesla has sent an unsigned letter to Donald Trump ‘s top trade representative warning that the company could be harmed by the president’s tariff war
The Tesla CEO has earned the nickname of ‘First Buddy’ since joining Trump on the campaign trail in July, with the president rewarding Musk’s presence – and millions in donations – with a special White House role
It said it was eager to avoid retaliation of the type it faced in prior trade disputes, which resulted in increased tariffs on electric vehicles imported into countries subject to U.S. tariffs.
‘U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions,’ the letter reads.
‘For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries.’
Trump is considering imposing significant tariffs on vehicles and parts made around the world in early April.
Tesla warned that even with aggressive localization of the supply chain, ‘certain parts and components are difficult or impossible to source within the United States.’
The automaker added that companies will ‘benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken.’
‘As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices,’ the EV maker said in the letter dated Tuesday.
DailyMail.com has reached out to both the White House and Ambassador Greer for comment.
It comes as Musk and Trump’s bromance appears stronger than ever after Trump turned the White House into a Tesla showroom earlier this week.
Trump was making good on a his promise to purchase one of the pricey electric cars to support Musk, who is leading his Department of Government Efficiency efforts to cut back the size and scope of the federal government.
The model Trump bought, which he said his staff at the White House would use, has a starting price of $76,880.
He and Musk sat in the car. Trump started the engine and Musk showed him the features. Alas, the president didn’t take it for a test drive, saying the Secret Service wouldn’t let him.
Trump defended Musk repeatedly.
‘This man is a great patriot and you should cherish it,’ he said of him.
However, despite a brief rise in stock price after the White House event, Tesla stocks continued to slide the rest of the week.
Tesla stock is now down 36% year to date in the market.
His company appears to have asked US Trade Representative Jamieson Greer to be careful how the president goes about its trade war with Canada and Mexico
Wall Street’s sell-off hit a new low Thursday after President Donald Trump’s escalating trade war dragged the S&P 500 more than 10 percent below its record – set just last month.
A 10 percent drop is a big enough deal that professional investors have a name for it – a ‘correction’ – and the S&P 500´s 1.4 percent slide on Thursday sent the index to its first since 2023.
The losses came after Trump upped the stakes in his trade war by threatening huge taxes on European wines and alcohol. Not even a double-shot of good news on the U.S. economy could stop the bleeding.
The S&P 500’s plunge from its February 19 high took just 16 trading sessions, making it the seventh-fastest correction since records began after the crash in 1929 that caused the Great Depression, according to Bloomberg data.
