Elon Musk’s Tesla and SpaceX fire back at trade tariffs, warn of rising costs

Meanwhile, SpaceX raised concerns about the operational costs tied to its Starlink internet satellite service.

Two major companies led by billionaire Elon Musk, SpaceX and Tesla, have submitted letters lobbying the U.S. Trade Representative regarding the Trump administration's tariff policies, CNBC reported.

The two firms conveyed distinct concerns to U.S. Trade Representative Jamieson Greer.

Tesla, the electric vehicle giant, warned that tariffs and retaliatory duties imposed by other countries on U.S.-made products could negatively impact its financial stability. The company expressed concerns that these trade barriers would inflate costs for vehicles manufactured in the United States and exported abroad, ultimately diminishing the competitiveness of American manufacturers.

“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,” stated Tesla’s unsigned letter, which was submitted by associate general counsel Miriam Eqab.

The letter further warned that “past U.S. 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 a less competitive international marketplace for U.S. manufacturers.” Tesla urged the USTR to explore strategies that mitigate these risks in future policy decisions.

Meanwhile, SpaceX raised concerns about the operational costs tied to its Starlink internet satellite service. According to CNBC, SpaceX argued that international trade barriers increase its costs, while foreign competitors face fewer such constraints when entering the U.S. market.

In its letter to Greer, SpaceX highlighted that it must pay foreign governments for spectrum access, import duties for Starlink equipment, and other fees that “substantially increase the cost of operating in these countries — artificially.”

“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,” wrote Mat Dunn, SpaceX’s senior director of global business and government affairs.

“As President Trump has noted with other sectors, this is a significant disadvantage to U.S. companies,” Dunn added.

The letters are among more than 700 received by the trade representative’s office in response to a public invitation for comments on "unfair trade practices by other countries." These responses have been published on a public docket, CNBC noted.

Musk is also currently overseeing the Department of Government Efficiency, an initiative aimed at reducing federal spending and workforce size, reportedly at the direction of President Donald Trump.