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Tesla warns of retaliatory tariffs in wake of Trump's

trade

policies

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Tesla emphasizes difficulty in sourcing parts domestically

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Autos Drive America trade group warns tariffs could

disrupt U.S.

production

By David Shepardson

WASHINGTON, March 13 (Reuters) - U.S. automaker Tesla

has warned that it and other major American exporters

are exposed to retaliatory tariffs that could be leveled in

response to President Donald Trump's aggressive use of tariffs.

Tesla CEO Elon Musk, a close ally of Trump, has been leading the

White House effort to shrink the size of the federal government.

The billionaire heads up the so-called Department of Government

Efficiency.

The letter reflects comments by many U.S. businesses

concerned by Trump's tariffs, and is notable because it is from

Tesla. It is not clear who wrote the letter, which is unsigned

but is on company letterhead.

Tesla said it is important to ensure that the Trump

administration's efforts to address trade issues "do not

inadvertently harm U.S. companies." It said it was eager to

avoid retaliation of the type it faced in prior trade disputes,

which resulted in increased tariffs on electric vehicles

imported into countries subject to U.S. tariffs.

"U.S. exporters are inherently exposed to disproportionate

impacts when other countries respond to U.S. trade actions,"

Tesla said in a letter to the U.S. Trade Representative's

Office. "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."

Trump is considering imposing significant tariffs on vehicles

and parts made around the world in early April.

Tesla warned that even with aggressive localization of the

supply chain, "certain parts and components are difficult or

impossible to source within the United States."

The automaker added that companies will "benefit from a

phased approach that enables them to prepare accordingly and

ensure appropriate supply chain and compliance measures are

taken."

Tesla did not immediately respond to a request for a

comment.

"As a U.S. manufacturer and exporter, Tesla encourages USTR

to consider the downstream impacts of certain proposed actions

taken to address unfair trade practices," the EV maker said in

the letter dated Tuesday.

Autos Drive America, a trade group representing major

foreign automakers including Toyota ( TM ), Volkswagen

, BMW, Honda ( HMC ) and Hyundai

, warned USTR in separate comments that imposing

"broad-based tariffs will disrupt production at U.S. assembly

plants."

The group added, "automakers cannot shift their supply

chains overnight, and 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."