Tesla warns Trump administration it is ‘exposed’ in trade war

Good morning and happy Friday. On today’s agenda:

• Tesla’s warning to Trump

• China blasts the Panama Canal ports deal

• Does the Olympic business model still work?

Elon Musk’s Tesla has warned that President Donald Trump’s trade war could make it a target for retaliatory tariffs against the US and increase the cost of making vehicles in America.

In an unsigned letter addressed to US trade representative Jamieson Greer, the electric-car maker said it “supports” fair trade but warned that American exporters were “exposed to disproportionate impacts when other countries respond to US trade actions”.

The letter underscores how even Tesla, a group led by Musk, a close Trump ally, is concerned about the potential effects of the wide-ranging tariffs. It follows two weeks of erratic trade policy announcements from the government that have rattled businesses and financial markets.

One person familiar with the process of sending the letter said it was “a polite way to say that the bipolar tariff regime is screwing over Tesla.”

The person added: “It is unsigned because nobody at the company wants to be fired for sending it.” Here’s what else we know about Tesla’s tariff concerns.

Here’s what else we’re keeping tabs on today and over the weekend:

• US government shutdown: Chuck Schumer, the top Senate Democrat, said he would back a Republican stop-gap funding bill, reducing the risk of a shutdown early tomorrow.

• Economic data: Argentina and Brazil report February inflation figures.

• G7 meeting: Top diplomats hold a second day of talks in Canada amid rising trade tensions and divisions over Ukraine.

How well did you keep up with the news this week? Take our quiz.

Five more top stories

1. Vladimir Putin has struck a hard line over any deal to halt the fighting in Ukraine, even as he said he “supports the idea” behind a US-backed 30-day ceasefire. Russia’s president suggested Ukraine could use the proposed ceasefire to “continue forced mobilisation, get weapons supplies and prepare its mobilised units”. Here’s how Trump responded to Putin’s comments.

2. China has criticised CK Hutchison’s sale of its Panama Canal ports and urged the Hong Kong-based conglomerate to “think twice” about its $22.8bn deal with US asset manager BlackRock. Shares in the company fell more than 6 per cent after the strongly worded commentary appeared in Beijing-backed newspaper Ta Kung Pao in Hong Kong. The piece also attacked the US for pressuring the deal “through despicable means”.

• US-China relations: Steve Daines, a senator with close ties to Trump, is trying to get the president to name him as a special envoy to China to help secure a meeting with Xi Jinping.

3. Insurers have warned that mass firings at US science agencies could threaten the critical weather and geospatial data that the industry uses to manage natural disaster risks and potentially raise prices for consumers. The trade group Reinsurance Association of America is lobbying the government to preserve data collection at the National Oceanic and Atmospheric Administration, after the department said that it would fire more than 1,000 staff.

4. Exclusive: China’s DeepSeek is choosing to focus on research over chasing revenues as its billionaire founder decides not to follow Silicon Valley rivals by taking advantage of a sudden jump in sales. A surge in demand for the artificial intelligence start-up’s services meant revenues were enough to cover ongoing costs for the first time last month.

5. The US has unlocked almost $5bn in funding for a liquefied natural gas project by France’s TotalEnergies in Mozambique, potentially restarting work on one of Africa’s largest energy investments. The company put the project on hold in 2021 after Islamist insurgents killed civilians and workers in attacks near the site. Here’s why the Trump administration has reapproved the loan.

The Big Read

On the face of it, the Olympics are riding high after the success of Paris 2024, which attracted a surge in viewership and revitalised a brand many feared was losing relevance with younger audiences. But as the organising committee chooses a new president next week, the world’s biggest sporting event is facing an exodus of major sponsors and a fast-changing media landscape.

We’re also reading . . . 

• Tariffs on money?: Capital inflows could be the Trump administration’s next target, writes Gillian Tett.

• Peak brain power: Data across countries and ages reveal a growing struggle to concentrate and declining verbal and numerical reasoning, writes John Burn-Murdoch.

• FT Magazine: Once a heavyweight in Hong Kong finance, Blackpool FC owner Simon Sadler now faces the possibility of jail. Kaye Wiggins goes inside the downfall of a trading titan.

Graphic of the day

Fears of possible tariffs on gold imports have sparked a rush in transatlantic trade of the metal. But due to a quirk in global bullion markets and the asset’s physical nature, refineries in Switzerland are working overtime, resizing the 1kg bars used in New York to the 12.5kg bricks traded in London. Here’s how the time-consuming process of shipping gold has become strained.

Take a break from the news . . . 

After 13 years of reviewing restaurants, Tim Hayward is questioning his own tastes and prejudices in his final critique. Restaurants have brought new menu items and exciting ideas, but one thing always stuck out. Now, he finally explains himself.