Tesla Can't Buy Auto Parts From China Due to Tariffs
Tesla, owned by billionaire Elon Musk, a close associate of President Trump, is currently unable to buy auto parts from China due to tariff policies.
Reuters on April 16 quoted a reliable source as saying that the US company Tesla cannot buy components for its Cybercab driverless taxi and semi-autonomous electric delivery vehicle in China, due to US President Donald Trump's tariffs on Chinese products.
"The plan to import parts for Tesla's Cybercab and Semi electric trucks into the United States has been delayed due to President Donald Trump's policy of increasing tariffs on Chinese goods in the trade war" - Reuters quoted the source as saying.
According to this source, after the US imposed a 34% tariff on imported goods from China, Tesla was ready to bear the additional cost, but after the announcement of the higher tariff, the company was forced to suspend its delivery plan.
According to Reuters, this move could jeopardize Tesla's plans to mass produce the Cybercab and Semi. Reuters sources said the company's goal is to start producing both models in October this year.
Now, billionaire Elon Musk and Tesla are facing rising tariffs in one of their most important markets. Tesla suspended orders for two models on its Chinese website on April 11, as Beijing raised tariffs on US goods to 125% in retaliation for Washington.
Tesla is now one of many US companies forced to make rapid adjustments to overseas manufacturing operations — from scaling back production to delaying deliveries — in response to the extraordinary upheaval caused by trade tensions.