EV maker Tesla has allegedly warned the US government that it faces increased costs from retaliatory tariffs as part of the trade war initiated by Donald Trump.

The US President has been imposing and halting tariffs on the country’s major trading partners, such as Canada, Mexico, and the EU. Currently, duties on steel and aluminium imports from the three markets have been raised to 25%, while levies on other products, including vehicles and critical minerals, have been paused until early April.

Canada has responded with reciprocal tariffs, while Mexico and the EU have yet to impose retaliatory measures, Kallanish notes.

In an unsigned letter to Jamieson Greer, the US Trade Representative, dated 11 March, Tesla warns that “US exporters are inherently exposed to disproportionate impacts when other countries respond to US actions.” Previous tariffs have increased costs for Tesla and other OEMs, “resulting in less competitive international marketplace for US manufacturers.”

“As a US manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices,” the letter states. “Tesla’s mission is to accelerate the world’s transition to sustainable energy.”  

Notably, Tesla’s ceo Elon Musk is a senior advisor and key ally of Trump.

In a separate letter to Greer, trade body Autos Drive America asks that relationships between the US and its trading partners “remain smooth,” as “a stable and predictable trade environment is particularly vital for capital-intensive industries like the automotive sector.” Its ceo Jennifer Safavian warns that the tariffs put US jobs and automotive exports “at risk.”

Kallanish could not confirm the veracity of the letter.