Tesla (TSLA, Financials) sent a letter to U.S. trade representative Jamieson Greer, warning that retaliatory tariffs could harm American automakers and consumers. The business said it supports fair trade rules but warned that U.S. exporters—especially those in the electric car industry—may suffer disproportionate effects from foreign trade reactions.

Affecting local manufacturers, Tesla referenced prior U.S. trade moves that set tax rises on American-made EVs in outside markets. The business observed that certain necessary components are still difficult or impossible to get locally even with attempts at localizing supply chains.The carmaker advised Greer to evaluate supply chain limitations in order to stop manufacturers from paying too much. The alert coincides with continuous U.S. trade conflicts involving China, Mexico, Canada, the European Union, and other countries that may impact Tesla and the larger automotive sector.Thursday after these events, Tesla's shares dropped 3.1%. Politically unstable times and possible trade restrictions have also caused the business to postpone building Gigafactory Mexico. With manufacturing aimed towards 2027, Tesla also revealed the Cybercab, a totally automated car devoid of pedals or a steering wheel. Trade rules and supply chains, however, can affect the company's future growth activities.