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 US has been delayed due to President Donald Trump's policy of increasing tariffs on Chinese goods in the trade war" - Reuters quoted a source as saying.
According to this source, after the US applied a 34% tax on imported goods from China, Tesla was ready to bear the additional cost, but after the announcement of the higher tax rate, 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.
Billionaire Elon Musk and Tesla are now 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 response to Washington.
Tesla is now one of many US companies forced to urgently adjust overseas manufacturing operations - from scaling back production to delaying deliveries - in response to the extraordinary fluctuations from trade tensions.