*

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

(Adds details about letter)

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.

The Tesla comments reflect those of many U.S. businesses

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

Tesla.

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 comments were made in a letter to the U.S. Trade

Representative's Office and available on the office's web site.

Dated Tuesday, it is among hundreds sent by companies to the

office about U.S. trade policy.

It is not clear who at Tesla wrote the letter, which is

unsigned but is on a company letterhead. Tesla did not

immediately respond to a request for a comment.

Tesla says it is important to ensure that the Trump

administration's efforts to address trade issues "do not

inadvertently harm U.S. companies."

It says it is 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 the letter. "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 warns 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 adds that companies will "benefit from a

phased approach that enables them to prepare accordingly and

ensure appropriate supply chain and compliance measures are

taken."

"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 says.

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."