World
Tesla sues U.S. Government over tariffs on Chinese imports
  ·  2020-09-24  ·   Source: CGTN

Photo taken on January 7 shows an inside view of Tesla Shanghai gigafactory in east China's Shanghai (XINHUA)

Tesla Inc. has sued to stop the U.S. Government from collecting tariffs on parts it imports from China for the manufacturing of its electric cars.

Bloomberg reported that Tesla on September 21 filed the suit concerning tariffs imposed by the Office of the U.S. Trade Representative (USTR) on imports from China in the U.S. Court of International Trade in New York.

The carmaker in its filing called tariffs "arbitrary, capricious, and an abuse of discretion." It wants the court to declare the duties unlawful and order a refund, with interest, amounts already paid.

The USTR last year denied Tesla's bid to avoid tariffs of 25 percent on the Chinese-made computer and display screens it uses in its Model 3 electric car.

At the time, the company argued that the increased cost imposed by the tariffs would cause economic harm through the increase of costs and impact to profitability.

In 2018, the company estimated that additional tariffs on parts sourced from China would decrease gross profit by $50 million in the fourth quarter of the year.

Tesla shares on September 23 tumbled 10 percent to $380.36 after its annual "Battery Day" event, in which its CEO Elon Musk said the company will cut costs to build a cheap electric car with a price tag of $25,000 in three years.

Other automakers, including General Motors, Volvo, Ford and Mercedes-Benz have also joined the battle to sue the U.S. government because of the increasing costs caused by additional tariffs on auto parts from China, AFP reported.

Mercedes-Benz argued that U.S. law "did not confer authority on defendants to litigate a vast trade war for however long, and by whatever means, they choose," AFP reported.

China
Opinion
World
Business
Lifestyle
Video
Multimedia
 
China Focus
Documents
Special Reports
 
About Us
Contact Us
Advertise with Us
Subscribe
Partners: China.org.cn   |   China Today   |   China Pictorial   |   People's Daily Online   |   Women of China   |   Xinhua News Agency   |   China Daily
CGTN   |   China Tibet Online   |   China Radio International   |   Global Times   |   Qiushi Journal
Copyright Beijing Review All rights reserved 京ICP备08005356号 京公网安备110102005860