Topline
Tesla’s website in China appeared to remove a feature allowing customers to purchase two car models the company imports from the U.S., an apparent change for the automaker as a trade war escalates between China and President Donald Trump.
China raised its tariffs on all U.S. imports to 125% in response to an escalating trade war with … More
Key Facts
Tesla’s website in China removed the “Order Now” button for its Model S sedan and Model X SUV, which are produced at Tesla’s factory in Fremont, California, though customers can still purchase the vehicles if the company has an existing inventory.
It’s not immediately clear when the button was removed, however, as a version of the website included the feature as of April 6.
The “Order Now” button is still accessible for Tesla’s Model 3 and Model Y vehicles, as they are assembled in Shanghai, China.
The feature’s removal appears to follow China raising its tariffs on all U.S. imports to 125% earlier on Friday, an apparent response to the U.S. targeting all Chinese imports with a combined 145% tariff on Wednesday.
Tesla did not immediately respond to a request for comment from Forbes.
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How Many Cars Does Tesla Import From China?
Tesla sold 78,828 China-made vehicles in March, an 11.5% decrease year-over-year, according to China Passenger Car Association data obtained by Reuters. While year-over-year sales decreased, deliveries for Model 3 and Model Y cars increased nearly 157% over the previous month.
What Has Elon Musk Said About Trump’s Tariffs?
While Musk has not directly criticized Trump’s tariffs on U.S. trade partners, he wrote last month Tesla is “NOT unscathed” and the “tariff impact on Tesla is still significant.” Musk said tariffs would affect Tesla parts that are imported from other countries, like batteries from China, and noted the “cost impact is not trivial.” He has also feuded with Trump’s trade adviser Peter Navarro, who defended how the Trump administration calculated its tariffs on U.S. trade partners, to which Musk said Navarro’s “PhD in Econ from Harvard is a bad thing, not a good thing.” Navarro, who also discussed Tesla’s manufacturing in an interview with CNBC, referred to Tesla as a “car assembler” rather than a car manufacturer, as Musk said Navarro was “truly a moron.” Musk has also shared a video of economist Milton Friedman, who defended free trade and argued for the benefits of importing goods.
Key Background
Earlier on Friday, Beijing’s State Council Tariff Commission announced it would raise tariffs on U.S. imports from 84% to 125%, as Chinese officials indicated they would no longer play into Trump’s escalating trade war. Chinese President Xi Jinping, who spoke while meeting with Spanish Prime Minister Pedro Sanchez in Beijing, said, “There is no winner in a tariff war,” while calling on the European Union to side with China to “oppose unilateral bullying practices.” China’s tariff increase was preceded by an announcement by Trump on Wednesday, during which Trump imposed an additional 125% tariff on Chinese imports. The 125% added to an existing 20% tariff that Trump already levied because of China’s role in the fentanyl crisis. Neither China nor the U.S. has shown signs of backing down on their increasing tariffs, though Trump has said he believed Xi would negotiate as he is “a very smart guy, and I think we’ll end up making a very good deal for both [countries].”
Further Reading
Trump’s Tariffs On China Are Now At Least 145%, White House Confirms—Higher Than He Previously Claimed (Forbes)
China Raises U.S. Tariffs To 125%—Xi Urges EU To Back Beijing’s Pushback Against ‘Unilateral Bullying’ (Forbes)
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