Amid US President Donald Trump's tariff war, his closest ally Elon Musk's Tesla warned that it could make the company a target for retaliatory tariffs that would also affect other automotive manufacturers in the US. 

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Tesla in an unsigned letter to Jamieson Greer, the US trade representative, said it "supports fair trade" but the US administration should ensure it did not "inadvertently harm US companies". 

"As a US manufacturer and exporter, Tesla encourages the Office of the United States Trade Representative (USTR) to consider the downstream impacts of certain proposed actions taken to address unfair trade practices," Tesla said in the letter. 

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The company stressed that US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions. 

"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," it added. 

In the past few days, Trump has begun a trade war by imposing significant tariffs that will affect vehicles and parts made around the world. 

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As Trump imposed tariffs on the EU and Canada, they further announced large-scale retaliatory tariffs on steel and aluminum imports into the US. While the UK has not yet announced any retaliatory tariffs. 

Over the last month, Tesla's share price has fallen by more than a third in an apparent buyer backlash against Musk, who has shown support for Germany's far-right Alternative fur Deutschland party. 

Musk has also accused the British Prime Minister Keir Starmer, and other senior politicians of covering up a scandal over grooming gangs.

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Moreover, this week, Trump said that he was buying a "brand new Tesla", blaming "radical left lunatics" for "illegally" boycotting the EV company. The US president's move comes after Tesla's share price fell the worst in almost five years. 

“As USTR continues to evaluate possible trade actions to rectify unfair trade practices, consideration should also be given to the timeline of implementation. US companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken," the letter read. 

Amid its efforts to localise its supply chain, Tesla pointed to its battery manufacturing plant in Reno, Nevada, and lithium processing facility in Corpus Christi, Texas. 

However, the company stressed that despite these efforts, certain components are still difficult or impossible to source domestically.

Notably, Tesla had also sent a similar letter during the first Trump administration, when similar tariffs were introduced. 

Also read: Trump plans to buy Tesla to support Elon Musk’s ‘baby’ amid boycotts, crashing stocks

(With inputs from agencies)