Tesla Claims "Tariffs on Chinese Parts Are Illegal"... Files Lawsuit Against US Administration

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Electric vehicle manufacturer Tesla has filed a lawsuit against the U.S. administration, requesting the removal of the 25% tariff imposed on Chinese-made parts, CNBC reported on the 23rd (local time).

According to the report, Tesla sued the U.S. Trade Representative (USTR) at the New York International Trade Court (CIT), claiming that the 25% tariff on Chinese-made display parts used in its 'Model 3' electric vehicles is "illegal."

Previously, the U.S. government imposed a 25% tariff on advanced industrial parts, semiconductors, and medical devices from China in July 2018, starting the trade war with China.

In the complaint, Tesla stated, "The USTR's imposition of high tariffs on Chinese-made parts is an abuse of discretion."

Furthermore, Tesla demanded the removal of tariffs on Chinese parts and a refund for tariffs already paid.

Earlier, Tesla had requested an exemption from tariffs on Chinese-made displays, but the USTR rejected the request.

In its tariff exemption request, Tesla stated, "We cannot find alternative suppliers that meet our requirements," and added, "Tariffs on certain Chinese parts increase the company's cost burden and negatively impact profitability."