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U.S.- China Trade War: Tesla, GM, Uber Denied Tariff Waive Requests

tesla jun14 lt

The U.S. has denied requests by Tesla, General Motors Co. and Uber for waving 25 percent tariffs related to Chinese products, Reuters reported. The decision comes amid the escalating trade war between the world's two-biggest economies.

Electric car maker Tesla Inc. had requested for tariff relief on Model 3 car computer and center screen components that are made in China. GM had at least 50 separate requests related to Chinese made parts for its vehicles, while ride-hailing company Uber requested to waive tariffs on electric scooters.

The U.S. Trade Representative's office or USTR reportedly denied all such requests for component parts imported from China.

Rejecting Tesla's request, the agency expressed concern that the said products are strategically important or related to 'Made in China 2025,' or other Chinese industrial programs.

USTR also had rejected Tesla's separate request in May to waive tariffs on its Autopilot "brain". Tesla earlier had noted that costs for producing vehicles in the U.S. were hurt by import duties on certain Chinese-made components.

For GM, the rejection was for Chinese parts including electronic controllers, high frequency antennas, push-button ignition switches, and electric motor parts, among others.

The U.S. trade officials also denied requests from Nissan Motor Co. and Fiat Chrysler for vehicle parts.

It was in last year that the Trump administration decided to impose 25 percent tariffs on Chinese imports, worth around $50 billion. The aim was to block China's efforts to develop high-technology industries as part of its 'Made in China 2025' program. Following the decision, USTR had allowed companies to petition for exemptions.

Out of around 13,000 requests in total, the agency reportedly has denied relief for more than 7,000 products.

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