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US-China trade war
WorldUnited States & Canada

Tesla sues to block Donald Trump’s tariffs on imports from China

  • Company is seeking order declaring duties unlawful, as well as refund – with interest – of amounts already paid
  • US Trade Representative Robert Lighthizer named as defendant in suit after his office denied Tesla’s bid to avoid tariffs

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Tesla failed last year to avoid tariffs of 25 per cent on the Chinese-made computer and display screens it uses in its Model 3 electric car. Photo: AP
Bloomberg

Tesla sued to block the Trump administration from collecting tariffs on parts the electric car maker imports from China.

Tesla filed suit on Monday in the US Court of International Trade in New York, seeking an order declaring the duties unlawful and a refund, with interest, of amounts it has already paid.

Tesla CEO Elon Musk walks next to a screen showing an image of a Model 3 car during an event in Shanghai in January. Photo: Reuters
Tesla CEO Elon Musk walks next to a screen showing an image of a Model 3 car during an event in Shanghai in January. Photo: Reuters
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The company is challenging actions by US Trade Representative Robert Lighthizer, who is named as a defendant in the case.

Lighthizer’s office last year denied Tesla’s bid to avoid tariffs of 25 per cent on the Chinese-made computer and display screens it uses in its Model 3 electric car.

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At the time, Tesla complained the increased costs imposed by the tariffs would cause it economic harm. In 2018, the company estimated that increased tariffs on parts from China would decrease gross profit by US$50 million in the fourth quarter of the year.

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