Tesla warns it could face retaliatory tariffs

People participate in a protest against Elon Musk outside of a Tesla dealership in West Bloomfield, Michigan on March 13, 2025. (AFP)
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Updated 14 March 2025
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Tesla warns it could face retaliatory tariffs

  • Tesla says it is important to ensure that the Trump administration’s efforts to address trade issues “do not inadvertently harm US companies.”

WASHINGTON: US automaker Tesla has warned that it and other major American exporters are exposed to retaliatory tariffs that could be leveled in response to President Donald Trump’s aggressive use of tariffs.
The Tesla comments reflect those of many US businesses concerned by Trump’s tariffs, but is notable because it is from Tesla.
Tesla CEO Elon Musk, a close ally of Trump, has been leading the White House effort to shrink the size of the federal government. The billionaire heads up the so-called Department of Government Efficiency.
The comments were made in a letter to the US Trade Representative’s Office and available on the office’s web site. Dated Tuesday, it is among hundreds sent by companies to the office about US trade policy.
It is not clear who at Tesla wrote the letter, which is unsigned but is on a company letterhead. Tesla did not immediately respond to a request for a comment.
Tesla says it is important to ensure that the Trump administration’s efforts to address trade issues “do not inadvertently harm US companies.”
It says it is 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 US tariffs.
“US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions,” Tesla said in the letter. “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 warns 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 adds 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 US manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices,” the EV maker says.
Autos Drive America, a trade group representing major foreign automakers including Toyota, Volkswagen , BMW, Honda and Hyundai , warned USTR in separate comments that imposing “broad-based tariffs will disrupt production at US assembly plants.”
The group added, “automakers cannot shift their supply chains overnight, and cost increases will inevitably lead to some combination of higher consumer prices, fewer models offered to consumers and shut-down US production lines, leading to potential job losses across the supply chain.”


US intel did not suggest a preemptive strike from Iran before US-Israeli attacks, AP sources say

Updated 58 min 25 sec ago
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US intel did not suggest a preemptive strike from Iran before US-Israeli attacks, AP sources say

  • The official said a variety of factors created a golden opportunity to take out much of Iran’s leadership

WASHINGTON: Trump administration officials told congressional staff in private briefings Sunday that US intelligence did not suggest Iran was preparing to launch a preemptive strike against the US, three people familiar with the briefings said.
The administration officials instead acknowledged there was a more general threat in the region from Iran’s missiles and proxy forces, two of the people said. The third person, however, said the administration emphasized that Iran’s missiles and proxy forces posed an imminent threat to US personnel and allies in the region.
The officials did not provide any clarity about what would happen next in Iran after the joint US-Israeli operation, the two people said. All three people insisted on anonymity to discuss details that have not been made public.
The information conveyed to the congressional staff contrasts with the message from President Donald Trump. “Our objective is to defend the American people by eliminating imminent threats from the Iranian regime. A vicious group of very hard, terrible people,” he said in a video message after launching strikes on Iran.
Senior Trump administration officials, who like others were not authorized to comment publicly and spoke on condition of anonymity, had told reporters Saturday that there were indicators that the Iranians could launch a preemptive attack.
The White House and Pentagon did not immediately reply to requests for comment on Sunday night. Details of the briefing were first reported by Politico.
On Tuesday, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, CIA Director John Ratcliffe and Gen. Dan Caine, chairman of the Joint Chiefs of Staff, will brief the full membership of Congress on the US military operation against Iran, the White House said Sunday. Rubio also was slated to brief Hill leadership Monday, the same day Hegseth and Caine are planning a press conference about the operation.
Three strikes, three locations, within a single minute
The military operation came after authorities from Israel and the US spent weeks tracking the movements of senior Iranian leaders, including Supreme Leader Ayatollah Ali Khamenei, and shared information that allowed the strikes to be carried out in a surprise daylight attack, according to an Israeli military official and another person familiar with the operation.
The eventual barrage of US-Israeli attacks on Iran came so quickly that they were nearly simultaneous — with three strikes in three locations hitting within a single minute — killing Khamenei and some 40 senior figures, including the head of the paramilitary Revolutionary Guard and the country’s defense minister, the Israeli military official said Sunday.
The official said a variety of factors created a golden opportunity to take out much of Iran’s leadership, like weeks of training and monitoring the movements of senior figures as well as intelligence in real-time before the attack began that key targets were gathered together.
Striking by day also gave an additional element of surprise, said the official, who said so many major, rapid-fire strikes were critical to keep key officials from fleeing after the first strike. The official said Israel closely cooperated with its US counterparts and had used a similar tactic at the beginning of last June’s war — which resulted in the killing of several senior Iranian figures.
The official also noted Khamenei having posted defiant tweets taunting President Donald Trump in the days before the attack.
The details about the strikes came as the conflict entered its second day, with Trump saying in a video message Sunday that he expected it would continue until “all of our objectives are achieved.” He did not spell out what those objectives were.
The Republican president also said the US military and its partners hit hundreds of targets in Iran, including Revolutionary Guard facilities, Iranian air defense systems and nine warships, “all in a matter of literally minutes.”
CIA had long tracked top Iranian leaders
Before the attacks, the CIA had for months tracked the movements of senior Iranian leaders, including Khamenei.
The intelligence was shared with Israeli officials, and the timing of the strikes was adjusted in part because of that information about the Iranian leaders’ location, according to the person familiar with the planning.
The intelligence-sharing between US and Israel reflects the preparation that went into the strikes, which threw the future of the Islamic Republic into uncertainty and raised the risk of escalating regional conflict.
The US regularly shares intelligence with allies including Israel. Those partnerships, and the accuracy of the intelligence they yield, is often critical not only to the success of a military operation but also to the public’s support for it.
Virginia Sen. Mark Warner, the senior Democrat on the committee, told The Associated Press that, historically, “our working relationship with the Mossad and Israel is really strong.” Mossad is the Israeli spy agency.
Warner said he has serious concerns about the justification for the strikes, Trump’s long-term plans for the conflict and the risks that US service members will face. The military announced Sunday that three American troops had been killed in the Iran operation.
“No tears will be shed over their leadership being eliminated, but always the question is: OK, what next?” Warner said.
Iran has signaled it’s open to talks with the US
A senior White House official said Iran’s “new potential leadership” has suggested it is open to talks with the United States. That official, who spoke on condition of anonymity to discuss internal administration deliberations, said Trump has indicated he’s “eventually” willing to talk but that for now the military operation “continues unabated.”
The official did not say who the potential new Iranian leaders are or how they made their alleged willingness to talk known. Separately, Trump told The Atlantic that he planned to speak with Iran’s new leadership.
“They want to talk, and I have agreed to talk, so I will be talking to them,” he said Sunday, declining comment on the timing.