Elon Musk’s business faces the brunt of Donald Trump’s tariff policies? Tesla and SpaceX raise concerns to USTR

Billionaire and DOGE head Elon Musk's companies, Tesla and SpaceX, have sent letters to the US Trade Representative (USTR) Jamieson Greer highlighting the issues with Donald Trump's tariff policies.

EV maker Tesla has cautioned about the negative consequences on its business from tariffs imposed by other countries on US-made products in response to duties imposed by the Trump administration.

Aerospace company SpaceX raised concerns about rising operating costs for its Starlink internet satellite service due to the retaliatory tariffs, while its other competitors abroad do not face a similar challenge.

Why Tesla and SpaceX are important?

Musk-owned companies are in focus due to the billionaire's involvement in the Trump administration through the Department of Government Efficiency (DOGE), which aims to reduce spending and cut jobs to save costs for the federal government.

Tesla's issue with US tariff policy

Tesla, in a letter to Greer, requested to weigh in on the impact of tariffs aimed to address “unfair trade practices.”

“While Tesla recognizes and supports the importance of fair trade, the assessment undertaken by USTR of potential actions to rectify unfair trade should also take into account exports from the United States. US exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions," the letter read.

The EV maker also mentioned the ways in which tariffs have increased costs for the company.

“Past US special tariff actions have thus (1) increased costs to Tesla for vehicles manufactured in the United States, and (2) increased costs for those same vehicles when exported from the United States, resulting in less competitive international marketplace for U.S. manufacturers.” Further Tesla requested US Trade Representative to address their concerns “to avoid these pitfalls in future action.”

Regulatory concerns of SpaceX

Elon Musk's space company, SpaceX, informed about the regulatory issues and trade barriers in other countries.

The letter by SpaceX to Greer mentioned how it “faces a range of regulatory complexities and trade barriers in every country that the US Government should seek to address in order to support continued US leadership in the space domain.”

While specifically referring to Starlink satellite internet equipment, SpaceX highlighted the costs it has to incur to pay foreign governments for access to spectrum and import duties and other fees that “substantially increase the cost of operating in these countries — artificially.”

The letter written by Mat Dunn, Senior Director, Global Business and Government Affairs, further read, “The import duties paid in a handful of countries represent a significant cost increase for Starlink products in those countries, despite the United States having essentially no duties on similar foreign products that are imported into the United States to serve customers here. As President Trump has noted with other sectors, this is a significant disadvantage to US companies."

Donald Trump's tariff policy

Donald Trump has imposed tariffs on trading partners such as Canada, the EU, Mexico, and China. The tariff tussle escalated after Canada, the EU, and China imposed retaliatory tariffs on US goods.

Donald Trump's support to Tesla

Donald Trump has been very vocal about his support for Tesla. Earlier this week, Trump purchased a red Tesla Model S Plaid on Tuesday for $80,000 ( approx ₹70 lakhs) to support the billionaire as his electric vehicle company faces protests and backlash due to his involvement with the US government through DOGE.