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Tesla Not Getting Any Special Favors From Donald Trump

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Oh, and Uber got shafted too.

Automakers who assemble their cars in China were not happy when US President Donald Trump announced a 25% tariff on parts and vehicles built in the People's Republic. Some of these automakers, including Buick and Volvo, requested an exemption on their Chinese-built vehicles, the Envision and XC60. Trump denied both requests, meaning General Motors and Volvo will lose profits on those models.

But President Trump isn't finished rejecting requests for tariff exemptions. Reuters reports that Trump has now denied requests from Tesla and Uber to waive tariffs on components for the Model 3 and electric scooters for the ride-sharing giant.

Tesla was seeking an exemption for two major Model 3 parts built in China including the car computer and center touchscreen. The US Trade Representative (USTR) rejected both claims, calling the parts "a product strategically important or related to ‘Made in China 2025,’ or other Chinese industrial programs.” Uber was similarly denied for its Chinese-made electric bikes, which fell under the same scrutiny.

Uber and Tesla weren't the only companies to receive additional rejections from the Trump Administration. The USTR rejected over 50 requests from GM including electronic controllers, antennas, ignition switches, battery cables, electric motor parts, and brake parts. Nissan also had dozens of denied requests and Fiat Chrysler had nearly twice as many rejections.

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FCA was seeking exemptions for the wiring harness and steering pump used in the 2019 Ram 1500 and Jeep Wrangler. After being denied, the company issued a statement saying the tariffs would "reduce its margins," and the company would have to "pass the additional cost onto consumers.” Out of 13,000 requests, the Trump Administration has denied around 7,000 of them. As the administration continues to deny exemptions for Chinese-built vehicles and components, we may start to see automakers raise prices to make up for lost revenue.

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