Elon Musk's Tesla sends bombshell letter to Trump admin warning about tariffs as stock price plummets

Elon Musk-owned Tesla has sent an unsigned letter to Donald Trump's top trade representative warning that the company could be harmed by the president's tariff war.

The Tesla CEO has earned the nickname of 'First Buddy' since joining Trump on the campaign trail in July, with the president rewarding Musk's presence - and millions in donations - with a special White House role.

However, Musk's company appears to have informed US Trade Representative Jamieson Greer that the president's trade war with Canada and Mexico is bad for business.

The tariffs will likely drive up costs for American companies that use the metals, such as automakers.

The unsigned missive was uploaded to the public comment portal for Greer by one of Tesla's in house lawyers.

Tesla often leaves its public comments unsigned, though many will speculate if Musk had anything to do with it given his tight relationship with Trump. 

The automaker said it is important to ensure that the Trump administration's efforts to address trade issues 'do not inadvertently harm U.S. companies.' 

Elon Musk-owned Tesla has sent an unsigned letter to Donald Trump 's top trade representative warning that the company could be harmed by the president's tariff war

The Tesla CEO has earned the nickname of 'First Buddy' since joining Trump on the campaign trail in July, with the president rewarding Musk's presence - and millions in donations - with a special White House role.

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,' the letter reads. 

'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.'

'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.

DailyMail.com has reached out to both the White House and Ambassador Greer for comment. 

It comes as Musk and Trump's bromance appears stronger than ever after Trump turned the White House into a Tesla showroom earlier this week. 

Trump was making good on a his promise to purchase one of the pricey electric cars to support Musk, who is leading his Department of Government Efficiency efforts to cut back the size and scope of the federal government.

The model Trump bought, which he said his staff at the White House would use, has a starting price of $76,880. 

He and Musk sat in the car. Trump started the engine and Musk showed him the features. Alas, the president didn't take it for a test drive, saying the Secret Service wouldn't let him.

Trump defended Musk repeatedly. 

'This man is a great patriot and you should cherish it,' he said of him.

However, despite a brief rise in stock price after the White House event, Tesla stocks continued to slide the rest of the week.

Tesla stock is now down 36% year to date in the market.  

His company appears to have asked US Trade Representative Jamieson Greer to be careful how the president goes about its trade war with Canada and Mexico

Wall Street's sell-off hit a new low Thursday after President Donald Trump's escalating trade war dragged the S&P 500 more than 10 percent below its record -  set just last month.

A 10 percent drop is a big enough deal that professional investors have a name for it - a 'correction' - and the S&P 500´s 1.4 percent slide on Thursday sent the index to its first since 2023. 

The losses came after Trump upped the stakes in his trade war by threatening huge taxes on European wines and alcohol. Not even a double-shot of good news on the U.S. economy could stop the bleeding.

The S&P 500's plunge from its February 19 high took just 16 trading sessions, making it the seventh-fastest correction since records began after the crash in 1929 that caused the Great Depression, according to Bloomberg data. 

Canada unveils $29.8B counter-tariffs on U.S.

 

Canada is hitting back at the United States with additional counter-tariffs worth $29.8 billion in response to new duties on Canadian steel and aluminum as a trade war between the two North American neighbours escalates.

The federal government made the announcement after a 25 per cent tariff imposed by the U.S. on all steel and aluminum imports from Canada and America’s other trading partners went into effect Wednesday.

Finance Minister Dominic LeBlanc said Canada’s new 25 per cent reciprocal tariffs will go into effect at 12:01 a.m. eastern on Thursday and apply to steel products worth $12.6 billion, aluminum products worth $3 billion and additional imported U.S. goods worth $14.2 billion.

“With these most recent tariffs on Canadian steel and aluminum, the U.S. administration is once again inserting disruption and disorder into an incredibly successful trading partnership and raising the costs of everyday goods for Canadians and American households alike,” LeBlanc said.

“We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted.”

Foreign Affairs Minister Melanie Joly said these tariffs pose “an existential threat to our country” and Canada will continue to “fight back against this nonsense.”

“The only constant in this unjustified and unjustifiable trade war seems to be President Trump’s talks of annexing our country through economic coercion,” she told reporters on Wednesday.

U.S. President Donald Trump had on Tuesday threatened to double the planned metal tariffs to 50 per cent in response to Ontario’s decision to impose a 25 per cent surcharge on electricity exports to the U.S., which was retaliation for Trump imposing sweeping 25 per cent tariffs on Canadian goods last week.The White House on Tuesday afternoon said the steel and aluminum tariffs would go ahead at 25 per cent instead of 50 per cent after Ontario suspended its electricity tax for three U.S. states.

The new counter-tariffs from Canada add to the 25 per cent counter-tariffs on $30 billion worth of U.S. goods that were imposed last week in response to the broad-based duties. Ottawa says these will remain in place until all of Trump’s tariffs are lifted.

Confused about how we got here? Click here for a timeline of Trump’s tariff threats and trade actions.LeBlanc said the federal government will continue to press the Trump administration to fully scrap the tariffs, while also working to support Canadian businesses and workers through “these challenging times.”

On Friday, the federal government unveiled new support measures worth $6.5 billion to mitigate the impact of the U.S. trade war on Canadian workers.

Labour Minister Steven MacKinnon also announced the temporary expansion of the “work-sharing program” to let employers cut hours while keeping workers in their jobs with income support.

Canadian provinces have separately unveiled their own retaliatory measures.

On Monday, Ontario introduced a 25 per cent tax on all electricity exported from the province to Michigan, Minnesota and New York in response to the U.S. tariffs on Canadian products. A day later, the province backed down and said there would be a meeting with U.S. officials on Thursday.

Industry Minister François-Philippe Champagne said he and LeBlanc will join Ontario Premier Doug Ford for that meeting in Washington, D.C.

Meanwhile, Trump has threatened more rounds of tariffs on Canada’s auto sector and Canadian dairy and lumber. He’s also threatened so-called reciprocal tariffs on all of America’s trading partners, including Canada, which are set to kick in April 2.

How will the steel and aluminum tariffs impact Canada and U.S.?

The metal tariffs are expected to impact workers and businesses on both sides of the border.

The U.S. relies on Canada for 75 per cent of its imported primary aluminum, according to the Aluminum Association of Canada.“Trump is knowingly inflicting damage to the North American manufacturing sector with these inflationary tariffs that will injure workers, eliminate jobs, and hurt consumers,” Lana Payne, national president of Unifor, said in a statement Wednesday.

The Canadian Chamber of Commerce said Trump’s tariffs are “proven to fail,” adding that the last time he tariffed steel and aluminum imports in 2018, it resulted in the “net loss of tens of thousands of American blue-collar jobs.”

“Steel and aluminum are about strength; these tariffs do nothing but weaken us both,” said Candace Laing, president and CEO of the Canadian Chamber of Commerce.“President Trump may as well hand over North America’s steel and aluminum leadership to China.”

David Adams, president and CEO of the Global Automakers of Canada, said tariffs on steel and aluminum will only make vehicles that are built in the U.S. more costly for Americans.

“The increased price of American-built vehicles sold in Canada will make those vehicles less competitive in the Canadian market,” Adams said.Canada is not the only country being hit by the steel and aluminum tariffs.

Trump’s executive order, which kicked in 12:01 a.m. eastern Wednesday, applies to all steel and aluminum imports from America’s trading partners, with no exceptions or exemptions.