Tesla Sues Trump Administration Over 'Unlawful' Tariffs Levied On It's Chinese Components

Tesla filed a lawsuit against the Trump administration aimed at ending what it considers “unlawful” tariffs levied on some parts imported from China.
The case, filed in New York, claims that “arbitrary, capricious, and misuse of discretion” is the 25 percent tariffs levied by the US trade representative on a range of goods like spare parts such as terminals the electric car maker uses in its cars.
The suit names as a defendant the US trade representative, Robert Lighthizer. Tesla’s offer to be exempted from tariffs on computer and display screens imported from China that it uses in its Model 3 electric car was turned down by his office last year.
The company, which was founded and financed by Elon Musk, said that having to pay higher prices for components would hurt it.
According to the filing at the New York-based Court of International Trade, the tariffs come in the midst of a larger trade dispute between Washington and Beijing, and Tesla wants their cancellation along with a “refund, with interest,” of duties already charged.
As part of an attempt by Washington to wean its factories off Chinese technology and lower the yawning trade deficit with China, the levies were levied.
After Trump took office in 2017, the US and China participated in months of a trade war, and amid a “phase one” agreement reached earlier this year signaling a partial ceasefire in the dispute, 25 percent additional tariffs remain on the equivalent of $250 billion in Chinese goods.
Beijing has taken action on these levies, while Washington tries to reduce its trade deficit as well as reform Chinese trade practices, which it finds “unfair.”


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