U.S. rejects Tesla’s bid for tariff exemption for Model 3 'brain.'
U.S. trade officials rejected Tesla's bid for relief from President Donald Trump's 25% tariffs on the Chinese-made computer "brain" of its Model 3 electric vehicle.
Tesla has a separate pending tariff exclusion request for duties on the Chinese-made Model 3 Center Screen. According to documents filed by U.S. Trade Representative's office and reviewed by Reuters, 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" program.
The company, in a securities filing on Monday, said that "our costs for producing our vehicles in the U.S. have also been affected by import duties on certain components sourced from China."
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