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Tesla is suing Donald Trump over tariffs against China

September 24, 2020

The company is requesting the International Trade Tribunal to declare tariffs on List 3 and List 4 to zero, two lots approved in 2018 and 2019.

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Tesla is suing Donald Trump over tariffs against China
Tesla is suing Donald Trump over tariffs against China

The trade war between Donald Trump and China has lost thousands of companies importing Chinese materials, electrical components, and others, including Tesla. Because of this, Elon Musk, its founder, decided to sue the United States government for the tariffs imposed on the Asian country.

The request is being made by Tesla to both the government and United States sales representative Robert Lighthizer, as reported by CNBC. The company is requesting the International Court of Commerce to declare zero tariffs on List 3 and List 4, two batches approved in 2018 and 2019 respectively, covering various products made in China.

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Tesla imports raw materials and components such as man-made graphite, silicon oxide and specially welded door rings, essential parts for your autopilot’s brain, and major parts into the structure of the vehicle whose function is to protect the driver and passengers from side impacts. In addition, Tesla also imports components that include the Model 3 screen and computer.

Elon Musk’s company says higher tariffs cause Tesla economic damage through higher costs and an impact on profitability. The government’s refusal to grant an exemption for parts of the Model 3 puts Tesla in serious trouble because this material is important and it is impossible to find another manufacturer to make it.

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