US rejects Tesla's offer to obtain a tariff exemption for the "brain" of Model 3



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The containers are piled on a ship at the Long Beach Port in Long Beach, California on July 6, 2018, including some of China Shipping, a conglomerate under the direct administration of the State Business Council. China.

Frederic J. Brown | AFP | Getty Images

US trade officials have rejected Tesla's bid to obtain a 25% duty relief imposed by President Donald Trump on the Chinese computer "brain" of his model 3 electric vehicle, one of the more than 1,000 refusals of products related to China's industrial development plans.

According to documents filed by the US Trade Representative's Office (USTR) and reviewed by Reuters, Tesla's tariff exclusion requests for products made in China, ranging from aircraft parts to biotechnology instruments , were all refused because they were considered "China 2025" program.

Tesla did not return any requests for comments. Tesla has a separate tariff exclusion request and pending duty on the Chinese-made model 3 screen.

The company, in a document filed Monday, said that "our production costs of our vehicles in the United States have also been affected by import duties on certain components from China".

The denials illustrate a systematic approach by the Trump administration to thwart China's efforts to develop high-tech industries that it believes would have benefited from the theft and the forced transfer of US intellectual property.

Made in China 2025, a program aimed at increasing China's skills in 10 strategic industries now dominated by the United States, is at the heart of trade negotiations and US demands to radically change trade, industrial and economic policies. of intellectual property of China.

These industries include new and autonomous energy vehicles, aerospace, semiconductors, biopharmaceuticals, robotics and artificial intelligence.

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