Author: Jack
POSTED ON 18 Jun 2019

U.S Denies Tesla Tariff Exemption

If you haven’t been keeping up with the news lately, you might have missed that the good ol’ US of A has been in a trade war with China for stealing intellectual property and unfair practices. The results of the ongoing dispute has been billions of dollars in tariffs placed on goods ranging from solar panels to computer parts.

A lot of those computer parts and circuit boards are made in China, and companies like Tesla rely on those for their touch screen and computers for the Model 3. As it stands, those parts are subjected to 25% in tariffs.

According to Tesla, if they were to use a different supplier outside of China, the Model 3 would have been delayed anywhere from 3 to 18 months. Tesla filled an exemption motion to the U.S Trade Representative Office for the parts made but was turned down. The reason their exemption request was denied was that those products are strategically important or related to “Made in China 2025′ or other industrial programs” – an initiative that the Chinese Government implement to try and become the new leader in global manufacturing.