Investing.com -- Tesla (NASDAQ: TSLA ), the electric-car maker led by Elon Musk, has expressed concern over President Donald Trump’s trade war, warning that it could lead to retaliatory tariffs against the US and increased manufacturing costs. In a letter to US trade representative Jamieson Greer dated March 11, Tesla voiced its support for fair trade but cautioned that US exporters could face disproportionate impacts in response to US trade actions, according to a report in the Financial Times, citing sources.

The Austin, Texas-based company pointed out that previous US trade actions have led to immediate reactions from targeted countries, including higher tariffs on electric vehicles (EVs) imported into those nations. This warning comes in the wake of erratic trade policy announcements over the past two weeks that have unsettled businesses and financial markets, fueling worries about the world’s largest economy potentially sliding into a recession.

The European Union and Canada have both threatened comprehensive retaliations for tariffs on steel and aluminum imports into the US, which came into effect earlier this week. An anonymous source familiar with the process of sending the letter described it as a polite way of expressing that the bipolar tariff regime is negatively affecting Tesla.

Tesla’s letter to the Trump administration also indicated that tariffs could raise the costs of vehicle production in the US, making them less competitive when exported overseas. The company urged the administration to avoid making minerals that are in short supply in the US, such as lithium and cobalt, even more costly to import.

The letter was submitted to the trade representative’s office as part of the agency’s wide-ranging request for comment from US businesses as it reviews foreign trade practices and attempts to identify any tariffs, taxes, regulations, or subsidies that could be harming companies. Tesla did not respond immediately to a request for comment.

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