5/6/2019

U.S. Rejects Tesla Bid for Relief on China Tariffs

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Trade officials in the U.S. have turned down Tesla Inc.’s request to be spared 25% import tariffs on Autopilot computer controls imported from China, Reuters reports.

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Trade officials in the U.S. have turned down Tesla Inc.’s request to be spared 25% import tariffs on Autopilot computer controls imported from China, Reuters reports.

The modules control the company’s semi-autonomous Autopilot system and are critical to its vehicles’ safety features. Tesla claims it couldn’t get the components elsewhere. The company asserts that finding and vetting another source for the circuitry would have slowed the already-delayed launch of its Model 3 electric sedan by 18 months.

Reuters says Tesla also has submitted a separate request to be excluded from paying 25% tariffs on large touchscreens used to control many of the Model 3’s other electronic features.

Reuters reports that the two Tesla components are among about 1,000 high-tech products that the White House says are being unfairly subsidized by China through its “Made in China 2025” initiative.


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