Trump trade war: Tesla warns of ‘disproportionate’ tariff impact
Tesla, run by Donald Trump cheerleader Elon Musk, has warned US officials it risks being exposed to “disproportionate” retaliatory tariffs under the president’s escalating trade war.
The electric carmaker raised the issue in a letter to the US Trade Representative’s (USTR’s) Office on the same day Mr Trump bought a Tesla car in a show of support for his close ally after a bloodbath for the company’s shares.
Investor concerns, mostly linked to the trade war, have pushed Tesla’s market value 50% down from its December peak – a hit of roughly £800bn.
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The backlash against the trade war intensified this week when Tesla suffered its worst daily loss in five years as part of broader stock market falls on fears that US consumers and businesses are now facing the prospect of a recession.
The declines at Tesla were also linked by market analysts to domestic anger over Mr Musk‘s work in government to shrink its size through leadership of the so-called Department of Government Efficiency.
Tesla’s letter was one in a growing mailbag, with businesses widely complaining about the threat of rising costs and red tape.
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It was not clear who wrote the Tesla document, as it was unsigned, but it stated it was important to ensure that the Trump
administration’s efforts to address trade issues “do not inadvertently harm US companies”.
Tesla said it wanted 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.
Canada and the EU are among nations to have responded with counter measures after US tariffs on all steel and aluminium imports came into effect this week.
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“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.”
Mr Trump is considering imposing significant tariffs on vehicles and parts made around the world in early April.
Such duties were initially confined to Canada and Mexico but later mostly suspended for four weeks amid complaints from US carmakers.
The president has said they will return on 2 April, alongside “reciprocal” tariffs which are widely expected to hit the European Union for the first time.
Tesla’s letter warned that protectionist policies designed to bolster US manufacturing and jobs were further harmful as “certain parts and components are difficult or impossible to source within the United States”.
It called for a phased approach to allow more time to bolster supply chains.
“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 concluded.
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The document builds on wider pressure to force a U-turn, with industry body Autos Drive America declaring this week that the tariff regime will harm production and earnings, with sales also set to face challenges as tariff costs are reflected in prices.
“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,” it wrote.
Venezuela’s President Nicolas Maduro has accused the US of a coup attempt after Donald Trump approved CIA operations in the country to tackle alleged drug trafficking.
Mr Trump confirmed his decision, first revealed by The New York Times, as he said large amounts of drugs were entering the US from Venezuela – much of it trafficked by sea.
“We are looking at land now, because we’ve got the sea very well under control,” he said.
When asked why the coastguard wasn’t asked to intercept suspected drug trafficking boats, which has been a longstanding US practice, Mr Trump said the approach had been ineffective.
“I think Venezuela is feeling heat,” he said.
Donald Trump at the White House on Wednesday evening. Pic: Reuters
Maduro hits back
He declined to answer whether the CIA has the authority to execute Mr Maduro, who denies accusations from Washington that he has connections to drug trafficking and organised crime.
The US has offered a $50m (£37m) reward for information leading to his arrest.
“How long will the CIA continue to carry on with its coups?” he asked after Mr Trump’s comments on Wednesday evening, saying calls for regime change harkened back to “failed eternal wars” in Afghanistan and Iraq.
In a message to the American people, he said in English: “Not war, yes peace. The people of the US, please.”
President Nicolas Maduro. Pic: Reuters
US targets ‘drug boats’
Mr Trump also alleged Venezuela had sent a significant number of prisoners, including individuals from mental health facilities, into the US, though he did not specify the border through which they reportedly entered.
On Tuesday, he announced America had targeted a small boat suspected of drug trafficking in waters off the Venezuelan coast, resulting in the deaths of six people.
According to the president’s post on social media, all those killed were aboard the vessel.
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Footage of the strike was released by Donald Trump on social media. Pic: Truth Social
The incident marked the fifth such fatal strike in the Caribbean, as the Trump administration continues to classify suspected drug traffickers as unlawful combatants to be confronted with military force.
War secretary Pete Hegseth authorised the strike, according to Mr Trump, who released a video of the operation.
The black-and-white footage showed a small boat seemingly stationary on the water. It is struck by a projectile from above and explodes, then drifts while burning for several seconds.
Mr Trump said the “lethal kinetic strike” was in international waters and targeted a boat travelling along a well-known smuggling route.
There has also been a significant increase in US military presence in the southern Caribbean, with at least eight warships, a submarine, and F-35 jets stationed in Puerto Rico.
A 39-year-old man died in hospital alone, miles from his family, after being detained by US immigration officials.
Ismael Ayala-Uribe, who had lived in the US since he was four, fell ill while in an immigration detention centre in California.
Ismael Ayala-Uribe was well known in the local Latino community
He complained of a fever and had a persistent cough in the weeks before he died, according to his mother Lucia.
She said he was initially treated by medical staff inside the detention centre but was returned to his cell.
He was eventually taken to hospital for a scheduled surgery to remove an abscess on his buttocks, but died before he was able to have the operation.
His family were never told he was in hospital, learning of his death via a knock on the door from police.
“They’re the ones that notified us that he had passed,” his brother, Jose Ayala, told Sky News.
“We were not even aware that he was in the hospital or even had a scheduled surgery. Then we got a knock on our door a little after 5.30 one morning.
“I believe he would still be alive today if he was never detained. He got sick while in detention, and they did not seem to take care of him.”
Ismael’s brother Jose speaks to Sky News
Why was he detained?
Mr Ayala-Uribe’s death raises questions about the conditions inside the centre he was held in, and if a sudden surge of immigrants being detained by this administration has left the system stretched beyond breaking point.
He had moved to the US from Mexico with his family as a child.
He did have DACA – deferred action for childhood arrivals – status, granted to those who have arrived while under the age of 18. But this was removed in 2016, after he was convicted of drink-driving.
In August, he was arrested by immigration agents at a car wash in California where he had worked for 15 years.
He was held for five weeks at Adelanto, a privately owned, run-for-profit, immigrant detention centre. A lawyer for his family said he was, as far as they are aware, a healthy man before he was detained and had no medical need.
But Mr Ayala-Uribe’s mother, who was visiting him every eight days and speaking to him on the phone a couple of times a day, said she noticed him getting progressively unwell.
Ismael’s brother and mother, Lucia
“He started with lots of fever,” Ms Ayala said. “He said they weren’t listening to him. The last time I saw him his face was drained, he told me he was not OK, he told me he couldn’t take it any more.”
Beginning to cry, wiping away tears, she added: “I feel powerless that I couldn’t do anything to help my son.
“I never imagined I was going to bury one of my sons. It feels terrible, they took a piece of my heart away.
“I would like something to change. If we cannot save him, at least we can save others that are still inside.”
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ICE defends detention treatment
The cause of Mr Ayala-Uribe’s death is still under investigation.
Sky News requested comment from the company which owns the detention centre where he was held, and they deferred to ICE, the US immigration and customs enforcement agency.
In a statement, ICE said: “Comprehensive medical care is provided from the moment individuals arrive and throughout the entirety of their stay.
“At no time during detention is a detained illegal alien denied emergency care.”
The Trump administration says it’s targeting criminals and people in the US illegally. But campaigners say Mr Ayala-Uribe’s death should not be viewed in isolation.
Images from Ismael’s funeral service
Since Donald Trump took office, at least 15 people have died in immigration detention.
Democrat senators Jon Ossoff and Raphael Warnock wrote a letter to the homeland security secretary, Kristi Noem, asking for more information about these deaths.
The senators claimed 10 people had died between January and June, and that it was the highest rate in the first six months of any year publicly available.
Sarah Houston, a lawyer for the Immigrant Defenders Law Centre, claims immigrants are being mistreated in custody.
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“This administration’s main goal is to harm, to torture individuals and to try to force them out,” she said.
“The great increase we see in human rights abuses, in deaths, is a direct result of the administration’s decision to pack these detention centres as much as they can.”
Mr Ayala-Uribe’s funeral was held this week. Dozens of extended family and friends wore t-shirts bearing his face. A mariachi band played as his casket was lowered into the ground and his mother heaved with sobs.
As they absorb their loss, the effort to carry out the biggest mass deportation operation in US history continues.
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