U.S. trade officials rejected Tesla Inc's bid for relief from President Don...
WASHINGTON - U.S. trade officials rejected Tesla Inc’s bid for relief from President Donald Trump’s 25 percent tariffs on the Chinese-made computer “brain” of its Model 3 electric vehicles, one of more than 1,000 product denials linked to China’s industrial development plans.
The company in a securities filing on Monday said: “our costs for producing our vehicles in the U.S. have also been affected by import duties on certain components sourced from China.” In a March 15 letter, USTR general counsel Stephen Vaughn said the agency was denying Tesla’s request because it “concerns a product strategically important or related to ‘Made in China 2025 or other Chinese industrial programs.” USTR issued a separate letter also denying a request for the earlier 2.5 version of the Autopilot ECU.
USTR has received China tariff exclusion requests for nearly 13,000 products and denied 5,311. Of the denials, 1,166, or more than a fifth, contained the same language as the Tesla request, citing links to Made in China 2025.Tesla told USTR it was unable to find a manufacturer in the United States, adding that “choosing any other supplier would have delayed the program by 18 months with clean room setup, line validation, and staff training.
Tesla has a separate pending tariff exclusion request filed in December for duties on the Chinese-made Model 3 Center Screen.
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