Tesla sends letter to White House warning of impacts of retaliatory tariffs

Tesla has written a letter outlining their concerns to the White House over potential retaliatory tariffs that could significantly impact its business and the broader U.S. auto industry. In the unsigned letter to U.S. Trade Representative Jamieson Greer, the automaker warned that escalating trade policies could trigger countermeasures from other nations, making American-made vehicles less competitive on the global stage.

According to a copy of the letter, dated March 11, 2025 and posted to USTR Comments Portal which can you read in full below, Tesla urges the White House to adopt a measured approach that mitigates unintended consequences for U.S. companies. The automaker called for a “phased approach” that allows manufacturers to adjust to new trade policies while preserving competitiveness in international markets.

The company also highlighted that despite its “aggressive localization of the supply chain,” sourcing some critical components domestically remains a challenge. Tesla noted that certain raw materials—such as lithium, cobalt, and nickel—are scarce within the U.S. and difficult to obtain without relying on global supply chains.

Imposing tariffs on these materials, the company warned, could drive up manufacturing costs and hinder the ability of American automakers to remain competitive internationally.

Despite having the most American-made cars on the market, the prospect of a 25% tariff on goods from Canada and Mexico is still a concern for Tesla. Tesla’s supply chain, like that of many other car manufacturers, is heavily reliant on components sourced from these two countries. A sudden cost increase in these parts could force Tesla to either raise vehicle prices or absorb financial losses.

You can read Tesla’s full letter below.

Are you buying a Tesla? If you enjoy our content and we helped in your decision, use our referral link to get C$1,300/US$1,000 off your purchase.
Previous Article

Rivian and Chase Offer Fisker Ocean Owners Buyback Program

Next Article

Tesla discontinues legacy Model Y in North America

You might be interested in …