Tesla Inc. has raised concerns about the possible negative effects of the ongoing trade war that was started by former President Donald Trump. The electric car company warned that retaliatory tariffs could have a major impact not only on its own business but also on other car manufacturers in the United States.
In a letter sent to Jamieson Greer, the U.S. trade representative, Tesla expressed its support for fair trade practices while asking the government to avoid taking steps that might unintentionally hurt U.S. companies. The letter, which was not signed, stated, “As a U.S. manufacturer and exporter, Tesla encourages the Office of the United States Trade Representative (USTR) to consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”
The letter specifically pointed out the difficulties faced by U.S. exporters, noting that they often experience “disproportionate impacts when other countries respond to U.S. trade actions.” Tesla explained, “For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on electric vehicles imported into those countries.”
The effects of Trump’s tariff policies are already becoming visible, with significant tariffs being imposed that could affect cars and car parts around the world. The European Union and Canada have announced extensive retaliatory measures, especially in response to U.S. tariffs on steel and aluminum imports. However, the UK has not yet taken any countermeasures.

In recent news, Tesla’s share price has fallen by more than a third in just one month. This drop is seen as a reaction from buyers to CEO Elon Musk’s political activities, which include controversial statements and public support for divisive political groups. After a sharp decline in Tesla’s stock, Trump claimed he was buying a “brand new Tesla” and blamed the drop on “radical left lunatics” who he said were illegally boycotting the company.
In its letter to the USTR, Tesla stressed the importance of carefully evaluating trade practices, saying, “As USTR continues to evaluate possible trade actions to rectify unfair trade practices, consideration should also be given to the timeline of implementation. U.S. companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken.”
At the same time, German carmaker BMW has also reported serious financial difficulties, with its net profits dropping by more than a third last year. The company, which owns brands like Mini and Rolls-Royce, pointed to potential effects from U.S. trade tariffs as a key factor in its financial outlook. BMW’s net profits fell by 37% to €7.68 billion ($8.3 billion) in 2024, and it expects its earnings margin for cars to be only 5% to 7% this year.
“A challenging competitive environment, trade and geopolitical developments could all have a significant impact on business performance,” BMW noted in its report. The automaker’s profit margin of 6.3% was the lowest in four years, missing its goal of keeping returns above 8%.
BMW’s forecasts took into account all tariffs imposed up to March 12, including significant charges on materials imported from China, Canada, and Mexico. The company is still struggling to compete with local electric vehicle manufacturers in China, where rivals like BYD are gaining more market share. BMW’s sales in China dropped by 13.4% compared to the previous year, contributing to a 4% decline in overall car sales to 2.45 million units last year.
Sources: The Guardian, NDTV
Published: Mar 14, 2025 5:30 PM UTC