U.S. denies Tesla request for tariff relief on China-made Model 3 'brain'
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News Mexico
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe and save 50%
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • Connectivity and its challenges go way back
      Data turns dealers into mind readers
      Who owns crash data? Good question
      Lessons learned from other industries
    • Hyundai adds to Aurora Innovation's latest funding round
      Uber unveils next-generation Volvo self-driving car
      Ford and VW near self-driving deal, report says
      Ford opens research center in Israel
    • Dealerships owned by ex-NFL stars face collapse, litigation
      Want a luxury car? Try a Kia
      Costly lesson of tortuous legal battle: Get it in writing
      Denny Hecker: A changed man?
    • As compliance pressures grow stronger, dealers and lenders must evolve
      Digital tools can improve compliance, but risks remain
      Healthy sales for healthier hearts
      It's very confusing out there
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Leading Woman Network
    • Guide to Economic Development
    • PACE Awards
    • CES
    • Management Briefing Seminars
    • World Congress
    • Auto Shows
      • Detroit Auto Show
      • New York Auto Show
      • Los Angeles Auto Show
      • Chicago Auto Show
      • Geneva Auto Show
      • Paris Auto Show
      • Frankfurt Auto Show
      • Toronto Auto Show
      • Tokyo Auto Show
      • Shanghai Auto Show
      • Beijing Auto Show
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Ram's rebuilt EcoDiesel muscles by rivals
      How do global suppliers thrive in a tough world?
      French pick alliance preservation over FCA promises
      Callum goes out on top after transforming Jaguar design
    • It's very confusing out there
      Safety now, self-driving later
      Can Ghosn get a fair trial?
      EV fever: I just don't get it
    • Apr. 12, 2019: Right moves at the right time for Ford
      Mar. 15, 2019: Cadillac’s new vehicle names lead to confusion
      Feb. 22, 2019: Tesla goes from disruptor to disrupted
      Feb. 15, 2019: EV startup gets Amazon, GM interest
    • Failure among equals leaves none looking like a winner
      It's very confusing out there
      Teamwork will help unlock revenue potential of vehicle data
      Who's to blame for the FCA-Renault deal collapse?
    • Politics-driven chaos unhealthy for auto industry
      Nissan's step off the stairs is the right move
      Remember dealers when cutting buyers' options
      Manley's outside hires will make FCA more competitive
    • Why is Ford leaving car fans behind?
      Dealer terminations are unforgivable
      Not everyone will see Tiger as a hero
      High-riding pickups getting out of reach
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
  • EVENTS & AWARDS
    • Events
    • Awards
    • World Congress
    • Retail Forum: NADA
    • Canada Congress
    • Marketing 360: L.A.
    • Leading Women Dallas
    • Europe Congress
    • Fixed Ops Journal Forum
    • Retail Forum: Chicago
    • Leading Women Conference Detroit
    • 100 Leading Woman
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealership To Work For
    • PACE Awards
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • +MORE
    • Webinars
    • Leading Women Network
    • Custom Features
    • Classifieds
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Ally: Do It Right
    • Guide To Economic Development
MENU
Breadcrumb
  1. Home
  2. Automakers & Suppliers
June 13, 2019 12:18 PM

Tesla, GM, Uber denied relief from U.S. tariffs on China goods

DAVID SHEPARDSON
Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    REUTERS

    WASHINGTON -- The Trump administration is expanding efforts to block the use of Chinese technology in advanced vehicles, denying additional requests by Tesla Inc. for tariff relief on key components of its electric vehicles, and rejecting ride-hailing company Uber's petition to waive tariffs on electric scooters and at least 50 separate requests by General Motors Co.

    After the United States slapped 25 percent tariffs on $50 billion of Chinese imports last year under the two countries' trade dispute, the U.S. Trade Representative allowed companies to petition for exemptions.

    Government documents show the USTR rejected requests to exempt Tesla's Model 3 car computer and center screen in May 29 letters, saying they both concern "a product strategically important or related to 'Made in China 2025,' or other Chinese industrial programs."

    In May, Reuters reported that USTR had rejected a separate request by Tesla to exempt the company's Autopilot "brain" from the tariffs.

    The more than 50 requests by GM rejected by USTR were for exemptions from Chinese-made parts used in vehicles including electronic controllers used for high voltage battery controls in hybrid and electric vehicles. It also rejected GM requests for high frequency antennas, push-button ignition switches, battery cables, electric motor parts and brake parts.

    GM declined to comment. In filings it said that some parts were not available outside China or that it would be cost prohibitive to shift production elsewhere.

    The USTR denied Uber Technologies Inc.'s request on May 29 for an exemption from the 25 percent tariff for its Chinese-made electric bikes that customers rent through its app. Uber declined to comment.

    USTR also rejected dozens of requests by Nissan Motor Co . It denied nearly two dozen requests from Fiat Chrysler for parts including wire harnesses and an electrical power steering pump used in vehicles like the company's 2019 Ram 1500 and Jeep Wrangler.

    Fiat Chrysler warned USTR in one request that without exemptions it will "reduce its margins, pass the additional cost onto consumers, or some combination of the two."

    The denials of relief for more than 7,000 products to date out of 13,000 requests illustrate a systematic approach by the Trump administration to thwart China's efforts to develop high-technology industries that Washington alleges benefited from theft and forced transfer of U.S. intellectual property.

    Tesla had warned that increased tariffs on the car computer it has dubbed the "brains" of the Model 3 causes "economic harm to Tesla, through the increase of costs and impact to profitability."

    Tesla had also urged the office to approve a request by its supplier SAS Automotive USA Inc., which builds the touchscreen control screen for the Model 3, which displays navigation, media, audio and other functions.

    Tesla did not immediately respond to a request for comment, but said in an April 29 securities filing that "costs for producing our vehicles in the U.S. have also been affected by import duties on certain components sourced from China."

    Tesla said in its tariff exemption request that "choosing any other supplier would have delayed the (Model 3) program by 18 months with clean room setup, line validation and staff training."

    China's "Made in China 2025" strategy is focused on 10 strategic advanced manufacturing industries including new energy vehicles, where it aims to be a global leader.

    Reuters reported previously that U.S. trade officials also rejected on May 29 separate requests from GM and Chinese-owned Volvo Cars for an exemption to the 25 percent U.S. tariff on crossovers made in China.

    Both GM and Volvo Cars, a unit of Geely, have not raised the sticker price to account for tariffs, which came into play last July.

    GM's Buick Envision, a midsize crossover with a starting price of about $35,000, has become a target for U.S. critics of Chinese-made goods, including UAW leaders and members in key political swing states such as Michigan and Ohio.

    USTR has also rejected dozens of other requests by suppliers for major auto companies.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Digital Edition
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Thumbnail
    Read the issue
    See our archive
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    SUBSCRIBE FOR $1.50/ WEEK

    Subscribe today and get unlimited digital access to over 90 years of editorial excellence at our lowest rate.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our Mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Leading Woman Network
        • Guide to Economic Development
        • PACE Awards
        • CES
        • Management Briefing Seminars
        • World Congress
      • News by Brand
      • Cars & Concepts
        • Auto Shows
          • Detroit Auto Show
          • New York Auto Show
          • Los Angeles Auto Show
          • Chicago Auto Show
          • Geneva Auto Show
          • Paris Auto Show
          • Frankfurt Auto Show
          • Toronto Auto Show
          • Tokyo Auto Show
          • Shanghai Auto Show
          • Beijing Auto Show
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • World Congress
        • Retail Forum: NADA
        • Canada Congress
        • Marketing 360: L.A.
        • Leading Women Dallas
        • Europe Congress
        • Fixed Ops Journal Forum
        • Retail Forum: Chicago
        • Leading Women Conference Detroit
      • Awards
        • 100 Leading Woman
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealership To Work For
        • PACE Awards
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • +MORE
      • Webinars
      • Leading Women Network
      • Custom Features
        • Ally: Do It Right
        • Guide To Economic Development
      • Classifieds
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds