Tesla Also Expresses Tariff Concerns... Trump: "There Will Be Confusion, But I Won't Back Down"

Tesla: "Increased Production Costs... Reduced Export Competitiveness"

US Treasury: "Not Worried About Stock Market, Focusing on Medium and Long Term"

It was reported on the 13th (local time) that even Tesla, the electric vehicle company of Elon Musk, who heads the Department of Government Efficiency (DOGE) in the Trump administration, has expressed concerns about President Donald Trump's tariff policy. This is because it could negatively impact corporate profits due to supply and price issues for certain parts that can only be sourced through imports.

However, President Trump plans to push ahead with his tariff policy. After the European Union (EU) announced retaliatory tariffs in response to US tariff policies, President Trump threatened to "impose a 200% tariff on European wine."

"Difficult to Source Certain Parts Domestically in the US"

In a letter sent to USTR representative Jamieson Greer on the 11th, Tesla stated, "US trade measures (tariff impositions) have led to immediate reactions (retaliatory tariffs) from counterpart countries," adding that "these include increased tariffs on electric vehicles imported into these countries."

In the letter, Tesla also urged, "Tariffs could increase vehicle production costs in the US and reduce export competitiveness," and "please don't make it more difficult to import raw materials (such as lithium and cobalt) that are scarce in the US."

Tesla also asked Representative Greer to "further evaluate the limitations of the domestic supply chain" to ensure that US manufacturers don't bear unnecessary burdens on essential parts due to excessive tariff impositions.

The Financial Times reported that Tesla's letter was submitted as part of USTR's process of gathering industry opinions to review potential damage to US companies from tariff policies. The March 11 letter was uploaded to the USTR website by Miriam Ekap, Tesla's legal counsel.

Retaliatory measures by counterpart countries against the Trump administration's tariff policies have already begun to visibly harm Tesla. British Columbia, Canada's third most populous province, has decided to stop providing government subsidies to local residents when they install Tesla chargers in their homes. At a press conference that day, British Columbia Governor David Eby said this measure was aimed at Musk, stating, "Residents won't want to spend their money (taxes) for Musk's benefit."

Trump: "Won't Back Down"

Other US companies besides Tesla are also expressing concerns about the Trump administration's tariff policy. Automaker Ford said it "adds enormous costs and confusion to the industry," while toy manufacturer Mattel stated it is "preparing response measures, including price increases."

However, President Trump is intensifying the trade war. After the US began imposing 25% tariffs on imported steel and aluminum, the European Union (EU) initiated retaliatory measures. The EU plans to impose tariffs of 10-50% on iconic American products such as Harley-Davidson motorcycles, bourbon whiskey, and Levi's jeans starting from the first of next month.

In a social media post this morning, President Trump criticized, "The EU, the world's most hostile and vicious tax and tariff authority, which was born solely to take advantage of the United States, has just imposed a nasty 50% tariff on (American) whiskey." He also warned, "If these tariffs are not immediately withdrawn, the United States will promptly impose a 200% tariff on all wines, champagnes, and alcoholic products produced in France and other EU member states," adding that "this will be very good for the American wine and champagne business."

Despite various warnings that the tariff policy could adversely affect the US economy, President Trump revealed his determination to endure, saying, "There will be some confusion, but it won't last long." Later that day, during a meeting with NATO Secretary General Mark Rutte at the White House, he also said, "Whether it's aluminum, steel, or cars, I won't back down."

Meanwhile, US Treasury Secretary Scott Bessent also stated regarding the recent sharp decline in US stock markets in connection with the Trump administration's high-intensity tariff policy, "We are not concerned about the small volatility over the past three weeks," adding, "We are focusing on the medium and long term."

New York=Special Correspondent Park Shin-young nysos1980@gmail.com