While the US has paused its higher tariffs on most countries for the next three months, its trade war with China continues unabated, with the rate imposed on China now set at 145% (this includes the previous fentanyl-based 20% tariff) and China having reciprocated by increasing tariffs on US imports from 84% to 125%.
With no sign of anyone backing down, the blinking has come from elsewhere, at least until the blows stop, it would seem. As Reuters reports, Tesla has suspended taking new orders for Model S and Model X vehicles on its Chinese website. Both models are made by the EV maker in the US and imported into China.
The news agency said that new orders for the two models were also no longer available on the automaker’s WeChat mini programme account in China. While Tesla did not give a reason for the move, the climbing tariffs is likely to be the reason why. Higher US tariffs would significantly increase the retail cost for Chinese consumers, making these cars more expensive than locally-produced EVs.
However, the omission of both models isn’t likely to be felt in the larger scheme of things, as China imported just 1,553 Model X and 311 Model S cars from the US in 2024. The two models accounted for less 0.5% of Tesla’s deliveries of more than 657,000 vehicles in the country last year.
Among automakers, the company isn’t really affected by Trump’s tariffs due to its largely domestic manufacturing for sales in the US, and its Model 3 and Model Y cars that are built at its Shanghai plant are for sale in the country and export to markets such as Europe.
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