The Trump administration has denied a number of requests from companies such as Tesla, GM, and Uber looking for relief on components and technologies from China.
Reuters reports that companies can file petitions for exemptions on the 25 per cent tariff which the U.S. applied to $50 billion worth of Chinese imports last year.
Tesla filed a request for tariff relief on computers and infotainment screens from the Model 3 but its request was denied. The U.S. Trade Representative (UTSR) said both parts concern “a product strategically important or related to ‘Made in China 2025,” or other Chinese industrial programs.”
Tesla also filed a separate request in May for the technologies used in the advanced Autopilot system to receive tariff relief. The UTSR rejected the request. The company has warned that the repeated denials causes “economic harm to Tesla, through the increase of costs and impact to profitability.”
General Motors has had in excess of 50 requests rejected by the Trump administration for parts it imports from China. These include electronic controllers used for high voltage battery controls in hybrid and electric vehicles, high-frequency antennas, battery cables, push-button ignition switches, electric motor parts, and brake components. The car manufacturer said that many of the parts it imports from China are not available anywhere else or would be prohibitively expensive to produce elsewhere.
Uber filed a requested for a tariff exemption for its Chinese-made electric bikes but also had its request denied. Other companies to have their requests rejected include Nissan and FCA. In total, more than 7000 denials of relief have been made out of 13,000 requests made for tariff relief.