Tesla applied for exemption tariffs on Chinese-made parts and was rejected by the United States
According to foreign media reports, Tesla wants to apply for a 25% tariff waiver for components such as on-board computers and central screens produced in China, but this was rejected by US trade officials. In a May 29 rejection letter, the Office of the US Trade Representative declared that refusing to exempt tariffs on products made in China was a concern about “a product of strategic importance or related to other Chinese industrial projects.”
Earlier, Tesla had asked the Trump administration to waive the tariff, saying the tariff threatened the company’s interests. Tesla said in a document submitted to the securities department on April 29 that tariffs on key components imported from China affected Tesla’s production costs in the United States. Tesla said in its tariff reduction request that abandoning Chinese suppliers to use new suppliers “will greatly increase the risk of poor parts quality, which may lead to overall vehicle quality problems, which in turn threaten the safety of the car and affect Consumer acceptance of the final product; in addition, the delivery plan for Tesla Model 3 will be delayed by 18 months, and will also affect the progress of production line verification and staff training.”
According to reports, more than 1,000 products, including China’s products, aerospace components and biotechnology equipment, including Tesla on-board computers, have been rejected by the US Trade Representative Office, mainly because of these products. It is considered to be of strategic importance to the “Made in China 2025” project. The Trump administration said that China’s high-tech industry has benefited from stealing and transferring US intellectual property rights. The refusal of the US trade department also proves that the Trump administration has adopted a systematic plan to hinder China’s development of high-tech industries.
In terms of car companies, in addition to Tesla, GM, Buick (Car Festival), Nissan, and Fiat Chrysler also submitted exemption applications to cancel the increase in tariffs. So far, no reply has been received.