U.S. rejects bid by Tesla for tariff exemption for Model 3 'brain'

WASHINGTON (Reuters) – U.S. trade officials rejected Tesla Inc’s bid for relief from President Donald Trump’s 25 percent tariffs on the Chinese-made computer “brain” of its Model 3 electric vehicle, one of more than 1,000 product denials linked to China’s industrial development plans.

According to documents filed by U.S. Trade Representative’s office (USTR) and reviewed by Reuters, Tesla’s and other tariff exclusion requests for Chinese-made products from aircraft parts to biotechnology instruments were all denied because they were deemed “strategically important” to the “Made in China 2025” program.

Tesla did not return requests for comment. Tesla has a separate pending tariff exclusion request for duties on the Chinese-made Model 3 Center Screen.