Following the U.S. announcement of significantly raising tariffs on China, American electric vehicle giant Tesla has reportedly paused importing parts from China to the U.S.
Foreign media cites informed sources saying this move might disrupt Tesla’s Cybercab autonomous taxi and Semi electric truck development plans. World’s richest man and Tesla CEO Elon Musk has repeatedly told investors that these two projects are crucial innovations for driving the future growth of the electric vehicle manufacturer.
The informed sources said that when U.S. President Trump imposed a 34% tariff on Chinese goods, Tesla was already prepared to bear the rising costs. However, with the tariffs further increasing to 145%, it has exceeded the company's tolerance, leading to the suspension of the import plans.
This person revealed that Tesla originally planned to begin receiving components from China in the coming months and aimed to start trial production of the two models this October, with a goal to achieve large-scale production by 2026. Cybercab is set to be produced in Texas, while the Semi truck will be manufactured in Nevada.
According to foreign media reports, this reflects how Trump's tariff policy, which aims to boost American domestic manufacturing, instead harms his political ally Musk. Musk has previously posted several times on the X platform expressing support for free trade and opposition to tariffs.
With China also imposing a 125% retaliatory tariff on American products, Tesla has stopped accepting new orders for the Model S and Model X in China. Both models are imported from the United States.
The Washington Post reported last week that Musk uploaded a video explaining how making a pencil requires the collaboration of a global supply chain, and he personally urged Trump to revoke reciprocal tariffs.