More Serious trouble for Tesla! Subsidies for buying EVs slashed & US gov not allowing cheap Chinese parts.
U.S. denies Tesla, GM, Uber 25% Chinese tariff relief
WASHINGTON (Reuters) - The Trump administration is expanding efforts to block the use of Chinese technology in advanced vehicles, denying additional requests by Tesla Inc for tariff relief on key components of its electric vehicles, and rejecting ride-hailing company Uber’s petition to waive tariffs on electric scooters and at least 50 separate requests by General Motors Co.
Government documents show the USTR rejected requests to exempt Tesla’s Model 3 car computer and center screen in May 29 letters, saying they both concern “a product strategically important or related to ‘Made in China 2025,’ or other Chinese industrial programs.”
In May, Reuters reported that USTR had rejected a separate request by Tesla to exempt the company’s Autopilot “brain” from the tariffs.
The more than 50 requests by GM rejected by USTR were for exemptions from Chinese-made parts used in vehicles including electronic controllers used for high voltage battery controls in hybrid and electric vehicles. It also rejected GM requests for high frequency antennas, push-button ignition switches, battery cables, electric motor parts and brake parts.GM declined to comment. In filings it said that some parts were not available outside China or that it would be cost prohibitive to shift production elsewhere.
The denials of relief for more than 7,000 products to date out of 13,000 requests 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 transfer of U.S. intellectual property.
Tesla had warned that increased tariffs on the car computer it has dubbed the “brains” of the Model 3 causes “economic harm to Tesla, through the increase of costs and impact to profitability.”
Tesla had also urged the office to approve a request by its supplier SAS Automotive USA Inc, builder of the touchscreen control screen for the Model 3, which displays navigation, media, audio and other functions.
Tesla did not immediately respond to a request for comment, but said in an April 29 securities filing that “costs for producing our vehicles in the U.S. have also been affected by import duties on certain components sourced from China.”
Shares of Tesla were off earlier highs after Reuters first reported the decisions, but closed up 2.2% at $213.91 on the Nasdaq.
Tesla said in its tariff exemption request that “choosing any other supplier would have delayed the (Model 3) program by 18 months with clean room setup, line validation and staff training.”
China’s “Made in China 2025” strategy is focused on 10 strategic advanced manufacturing industries including new energy vehicles, where it aims to be a global leader.