In an unsigned letter addressed to U.S. Trade representative Jamieson Greer, Tesla warned that “U.S. Exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. Trade actions.”

The company cautioned that aggressive tariffs could lead to retaliatory measures from other nations that could directly impact American manufacturers and exporters. The EV maker highlighted the potential fallout for the automotive sector, pointing to past trade actions that have triggered immediate countermeasures.

“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,” Tesla said in the letter dated March 11. The company also warned that tariffs could impact the supply chain as “certain parts and components are difficult or impossible to source within the United States.”

The letter reiterates concerns expressed by many other U.S. Business leaders over Trump’s aggressive trade tariffs, but, this time it’s coming from a close ally.

“It’s a polite way to say that the bipolar tariff regime is screwing over Tesla,” a person familiar with the sending of the letter told the Financial Times. “It is unsigned because nobody at the company wants to be fired for sending it.”

Tesla CEO Musk has been heavily involved in the Trump administration, emerging as the face of the newly established Department of Government Efficiency (DOGE). Musk campaigned heavily for Trump during his campaign and has become one of the most visible figures in the new administration.

While Tesla said in the letter that it “supports” fair trade, it urged the administration to ensure that the Trump administration’s efforts “do not inadvertently harm U.S. Companies.”

U.S. Exports will “benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken,” the letter added.

Tesla did not immediately respond to a request for comment from Coins2Day.

Industry-wide concerns

Tesla’s concerns echo broader industry warnings about the unintended consequences of broad-based tariffs, which could disrupt production and increase prices.

The Trump administration is weighing the implementation of sweeping tariffs on vehicles and auto parts produced worldwide, to go into effect as early as April.

In the letter, the company pointed to its significant investments in domestic production, including its battery manufacturing plant in Nevada and lithium processing operations in Texas.

However, Tesla said that even with a concerted effort to localize supply chains, certain key materials are still reliant on imports.

It urged the Trump administration to “further evaluate domestic supply chain limitations to ensure that U.S. Manufacturers are not unduly burdened by trade actions that could result in the imposition of cost-prohibitive tariffs on necessary components.”

Tesla is not alone in its concerns. Autos Drive America, a trade group representing major foreign automakers such as Toyota, Volkswagen, and BMW, has also cautioned against sweeping tariff measures.

The group warned that “broad-based tariffs will disrupt production at U.S. Assembly plants.”

It said that, because automakers cannot move their supply chains overnight, “cost increases will inevitably lead to some combination of higher consumer prices, fewer models offered to consumers and shut-down U.S. Production lines, leading to potential job losses across the supply chain.”