Tesla warns of Trump tariff own goal as US trade war escalates

Group 1: Trade War Impact on Tesla - Tesla has warned US officials about the risk of facing "disproportionate" retaliatory tariffs due to the ongoing trade war initiated by the Trump administration [1][4] - The company's market value has decreased by 50% from its peak in December, amounting to a loss of approximately £800 billion [2] - Tesla experienced its worst daily loss in five years, attributed to broader market declines and concerns over a potential recession affecting US consumers and businesses [3] Group 2: Tesla's Concerns and Recommendations - In its letter to the US Trade Representative, Tesla emphasized the importance of ensuring that trade actions do not inadvertently harm US companies [4][8] - The company expressed a desire to avoid retaliatory tariffs similar to those faced in previous trade disputes, which led to increased tariffs on electric vehicles in response to US tariffs [5][6] - Tesla called for a phased approach to trade policies to allow more time for strengthening supply chains, highlighting the difficulty of sourcing certain parts domestically [7][8] Group 3: Industry-Wide Reactions - The letter from Tesla reflects a broader industry concern, with organizations like Autos Drive America warning that the tariff regime could negatively impact production and earnings [10] - Automakers are unable to quickly shift their supply chains, which could result in higher consumer prices, fewer vehicle models, and potential job losses across the supply chain [11]