The never-ending Trump tariff saga continues. Tesla has halted Model S and X sales in China, according to reporting by Bloomberg. These particular vehicles are imported to the country from the US so they are impacted by a 125 percent tariff on goods flowing into China. This was enacted by China in response to President Trump placing a 145 percent tariff on imported goods from the country.
This isn’t a huge deal for Tesla, as the high-end Model S and Model X are some of the company’s least-popular vehicles in the region. It’s still selling off pre-existing inventory, but the models will be unavailable after that. The more affordable Model 3 and Model Y vehicles are actually made at Tesla’s Shanghai Gigafactory, so they aren’t impacted by the tariffs.
Trump’s tariffs on China and the ones the country has put on the US in response could seriously harm the EV industry here in the states. The European Union has been thinking about opening up its doors to more Chinese electric vehicles, which would likely ding American automakers. Many Chinese-made EVs are significantly more budget-friendly than their American-made counterparts.
For instance, the BYD Seagull hatchback would cost just $9,600 in US dollars. Chinese EV manufacturers are also making strides in the world of autonomous driving.
As for the tariffs, who knows what the future will bring. Maybe they’ll go away tomorrow or maybe President Trump will whip out his poison pen and increase them tenfold on a whim. What a nice predictable world we live in.
This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/tesla-halts-model-s-and-x-sales-in-china-due-to-tariffs-185752814.html?src=rss
