U.S. denies Tesla tariff relief request for Chinese-made Model 3 'brain'Reuters | Washington DC | Updated: 13-06-2019 21:16 IST | Created: 13-06-2019 20:45 IST
The California-based electric vehicle manufacturer had warned that increased tariffs on the car computer it 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, builder of the center display screen for the Model 3.
Tesla did not immediately respond to a request for comment. Shares of Tesla dipped from earlier highs after Reuters first reported the decisions but were still up more than 1% at $212.75. 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 General Motors Co and Chinese-owned Volvo Cars for an exemption to a 25% U.S. tariff on their Chinese-made sport utility vehicles. Both GM and Volvo Cars, a unit of China's Geely, had not raised the sticker price to account for tariffs, which came into play last July.
GM's Buick Envision, a midsize SUV with a starting price of about $35,000, has become a target for U.S. critics of Chinese-made goods, including leaders of the United Auto Workers union and members in key political swing states such as Michigan and Ohio. (Reporting by David Shepardson Editing by Bill Berkrot)