In a significant move reflecting the escalating trade tensions between the United States and China, Tesla has halted new orders for its Model S and Model X in China. The decision follows Beijing’s recent announcement of increased tariffs on U.S. imports, a retaliation against additional levies imposed by President Trump. The “order” button for these models was removed from Tesla's Chinese website on Friday, signaling a shift in the company’s retail strategy. However, customers may still purchase these vehicles if existing inventory is available.
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The abrupt halt in new orders coincided with China’s decision to elevate tariffs on U.S. goods by 41 percent, matching the reciprocal tariff rates imposed by Trump. This aggressive move raises the total tariff on American imports to a staggering 145 percent. Additional tariffs are now back-and-forth as both nations impose further restrictions. Following these developments, China also announced a complementary increase of 41 percent on American imports starting Saturday, demonstrating the intensifying nature of the trade conflict.
Tesla continues to maintain a presence in China despite the struggles posed by the growing competition from local manufacturers. Recent statistics from the China Passenger Car Association highlighted that Tesla’s sales of locally produced vehicles declined by 11.5 percent in March compared to the previous year, amid rising competition from brands like BYD, which saw a sales surge of 23 percent during the same period. Tesla's relationship with Chinese authorities remains strategic.
Source: nytimes / Pic:
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