Tesla Warns That Trade War Could Increase Production Costs

Tesla, the electric vehicle manufacturer led by Elon Musk, has raised concerns about President Donald Trump's trade war, warning it could lead to retaliatory tariffs and increased production costs for the U.S. According to a report by the Financial Times, Tesla expressed its support for fair trade in a letter to U.S. Trade Representative Jamieson Greer on March 11, cautioning that U.S. exporters might face disproportionate impacts in response to U.S. trade actions.

The Austin, Texas-based company noted that previous U.S. trade actions had prompted immediate responses from targeted countries, including higher tariffs on imported electric vehicles (EVs). This warning followed unstable trade policy announcements that have unsettled businesses and financial markets, raising concerns about a potential recession in the world's largest economy. Tesla also urged the administration to avoid making the import of crucial minerals like lithium and cobalt more costly.