US rejects Tesla’s bid to avoid tariffs on Chinese-made Model 3 ‘brain’ in one of 1,000 product denials linked to ‘Made in China 2025’ plan
- Move illustrates attempt to thwart Beijing’s efforts to develop hi-tech industries that Washington alleges benefited from theft of US intellectual property
- Programme aimed at growing China’s prowess in 10 strategic sectors dominated by US is central to trade negotiations and American demands
US trade officials rejected Tesla’s bid for relief from US President Donald Trump’s 25 per cent tariffs on the Chinese-made computer “brain” of its Model 3 electric vehicles, one of more than 1,000 product denials linked to China’s industrial development plans.
According to documents filed by the US Trade Representative’s office (USTR), Tesla’s and other tariff exclusion requests for Chinese-made products from aircraft parts to biotechnology instruments were all denied because they were deemed “strategically important” to the “Made in China 2025” programme.
Tesla did not return requests for comment. Tesla has a separate pending tariff exclusion request for duties on the Chinese-made Model 3 Centre Screen.
The company said in a securities filing on Monday that “our costs for producing our vehicles in the US 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 it alleges had benefited from the theft and forced transfer of US intellectual property.