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U.S. rejects Tesla bid for tariff exemption

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U.S. trade officials rejected Tesla Inc’s bid for relief from President Donald Trump’s 25-percent tariffs on the Chinese-made Autopilot “brain” of its Model 3 and other electric vehicles, one of more than 1,000 product denials linked to China’s industrial development plans.

Axar.az reports citing Reuters.

According to documents filed by the U.S. Trade Representative’s office (USTR) and reviewed by Reuters, exclusion requests from Tesla and others for Chinese-made products from aircraft parts to biotechnology instruments were denied because they were deemed “strategically important” to the “Made in China 2025” program.

Tesla declined to comment.

The company has separate pending tariff exclusion requests for duties on the Chinese-made Model 3 Center Screen and for the Model 3 Car Computer before USTR.

Tesla said in a securities filing on Monday: “Our costs for producing our vehicles in the U.S. have also been affected by import duties on certain components sourced from China.”

The denials illustrate a systematic approach by the Trump administration to thwart China’s efforts to develop high-technology industries that Washington alleges benefited from theft and forced the transfer of U.S. intellectual property.

Made in China 2025, a program aimed at growing China’s prowess in 10 strategic industries dominated by the United States, is at the heart of trade negotiations and U.S. demands for sweeping changes to China’s policies.

Those industries include new energy and autonomous vehicles, aerospace, semiconductors, biopharmaceuticals, robotics and artificial intelligence.

Date
2019.05.04 / 16:55
Author
Axar.az
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