Musk's Tesla Criticizes Trump Tariffs Amid Trade Tensions.
Elon Musk's electric carmaker, Tesla, has warned that it and other U.S. exporters could face significant harm if countries retaliate against trade tariffs imposed by President Donald Trump.
Despite being a close ally of Trump and leading efforts to reduce the size of the federal government, Musk's company expressed concerns in an unsigned letter to the U.S. trade representative. While Tesla stated that it "supports" fair trade, it warned that American exporters were "exposed to disproportionate impacts" if foreign governments retaliated against U.S. tariffs.
The letter, dated the same day Trump hosted a White House event pledging to buy a Tesla in a show of support for Musk, raises questions about whether Musk was aware of its contents. It remains unclear who at Tesla authored the document.
Tesla’s stock has fallen 40% since the beginning of the year. While some believe Musk’s alignment with Trump is damaging the brand, market analysts attribute the decline primarily to concerns over production targets and slowing sales over the past year.
In the letter, Tesla detailed ongoing efforts to localize its supply chain, reducing reliance on foreign parts and components. However, it acknowledged that "even with aggressive localisation of the supply chain, certain parts and components are difficult or impossible to source within the U.S."
Trump recently imposed an additional 20% tariff on all imports from China, prompting immediate retaliatory tariffs from Beijing, including on electric vehicles (EVs). China remains Tesla’s second-largest market after the U.S.
"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," the letter stated.
The European Union and Canada have also threatened sweeping countermeasures in response to U.S. tariffs on steel and aluminum, which took effect earlier this week. Meanwhile, demonstrators have targeted Tesla showrooms in protest against Musk’s cost-cutting role in Trump’s administration, where he leads the Department of Government Efficiency (Doge).
At a recent White House event, Trump condemned the protests, declaring that those demonstrating against Tesla should be labeled "domestic terrorists." Seated in a brand-new red Tesla he claimed he planned to purchase, Trump added that protesters were "harming a great American company," warning that anyone using violence against Tesla would "go through hell."
Conclusion: Musk’s Hypocrisy
Elon Musk’s dual role as both a free-market advocate and a political insider highlights a striking contradiction. While Musk has long positioned himself as a champion of deregulation and government efficiency, his company is now directly warning that Trump’s trade policies threaten its business.
Despite benefiting from Trump’s endorsements and government contracts, Musk appears willing to distance Tesla from the administration when it suits financial interests. His involvement in shaping policy, while simultaneously complaining about its consequences, underscores a broader hypocrisy—Musk wants the advantages of political influence without accepting the fallout of policies that he, in part, helped shape.
