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| Tesla is suing the US government over China |
Electric vehicle manufacturer Tesla is suing the US government and US sales representative Robert Lighthizer over tariffs the Trump administration has imposed on Tesla imports from China.
According to a lawsuit in the US International Trade Court, the electric car maker hopes that the court will raise the two tariffs imposed by the Trump administration and pay the interest-based tariffs to Tesla.
The specific tariffs concerned with List 3 and List 4 are indicated because List 3 went into effect in 2018 and currently imposes an additional tariff of 25% on US $ 200 billion imported from China.
List 4 went into effect in 2019 and currently includes a 7.5% tariff on $ 120 billion in Chinese imports.
Both lists contain hundreds of very specific items, from raw materials to electronic parts, and the lawsuit failed to determine which items Tesla paid for which items.
Tesla's attorneys state in court documents that the fees imposed on the United States Trade Agent (USTR) under Appendices 3 and 4 are arbitrary and variable. In the absence of an opportunity for comment, the office of the United States Sales Representative did not take into account relevant factors in its decision-making and failed to establish an appropriate link between the facts discovered and the decisions taken.
According to the website of the Office of the United States Trade Representative, the company has the option to request exceptions to certain conditions under the collective bargaining system. Tesla requested waivers for three products in 2019 and was given an expiration date of August 2020.
In 2019, the US government rejected Tesla's request to reduce tariffs by 25% on Model 3 computers and cars, arguing that these components use strategic technologies for China's national security plan.
These components, Tesla said, are the brain of the autonomous driving system. The exemption request states: An increase in tariffs for this specific component will cause economic damage to Tesla by increasing costs and reducing profitability.
"Given the complexity of the Model 3 laptop and the timing required to grow Tesla rapidly, Tesla was unable to find other manufacturers to meet their needs," she added.