Russian import buyers may shrug off higher tariffs on niche models such as Tesla.

Tesla Denied Relief From US Tariffs on Chinese Gear in Model 3

June 13, 2019
In its request to USTR, Tesla called the computer the “brains” of the Model 3 and said increased tariffs on the component would cause the company economic harm through higher costs and “impact to profitability.”

The Trump administration has refused to spare Tesla Inc. from tariffs of 25% levied on the China-made computer “brain” and large center screen used on its Model 3 electric car.

The denials were made in two May 29 letters from the U.S. Trade Representative’s general counsel responding to requests for relief by the California-based electric car manufacturer and its supplier of the Model 3’s center touchscreen, through which users control navigation, media and other vehicle systems.

In its request to USTR, Tesla called the computer the “brains” of the Model 3 and said increased tariffs on the component would cause the company economic harm through higher costs and “impact to profitability.”

The exemption requests were denied because the Model 3 components in question are “strategically important or related to ‘Made in China 2025’ or other Chinese industrial programs,” the USTR letters said.

Tesla had no immediate comment when contacted Thursday.

Popular Sponsored Recommendations

Why Cybersecurity Maturity Model Certification (CMMC) is so important.

Dec. 14, 2022
Defense contractors face the very real threat of losing business if they are noncompliant with the Cybersecurity Maturity Model Certification (CMMC) standard. But what is it exactly...

The ROI of Smart Manufacturing

April 18, 2023
Is smart manufacturing worth the investment? Explore our ABI Report and learn how private cellular networks can generate a 10x to 20x ROI as it highlights five promising use cases...

Successfully Managing Change Through Integrated Manufacturing Operations Management

June 7, 2022
How Med-Tech companies manage ongoing change will be the key to success.

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!