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You're here and Uber have both had requests for tariff relief rejected by US trade officials, a decision that will require companies to pay 25% of fare or to look for new suppliers.
Reuters was the first to report on the decision made by the US Bureau of Trade Representatives. TechCrunch had previously reported the Trump administration's refusal to exempt the "brain" of Tesla's autopilot technology from punitive import duties.
Last year, the Trump administration imposed 25% tariffs on various imports, including electronics, to reduce the US trade deficit with China. Tesla and Uber are among the American companies that have asked for a reduction in these rates.
Tesla filed an application for exemption on the Model 3 car computer at the end of December, including its Multimedia Control Unit, Connectivity Card and Advanced Assist Assistance System (ADAS) hardware. Uber asked for a waiver for its electric bikes made in China.
In a May 29 letter, the USTR rejected Tesla's claims, claiming that the Model 3 car computer and the central display were "products of strategic importance" or "Related to the Made in China 2025 program or other Chinese industrial programs".
Made in China 2025 is China's strategic plan to abandon manufacturing to produce higher value goods, including artificial intelligence, electric vehicles and robotics. The White House noted that manufacturing in China poses a direct threat to US technology and automotive companies.
Tesla declined to comment on the decision.
Earlier this year, Tesla unveiled a new custom chip designed to allow what it describes as an autonomous driving operation (FSD) for all its new vehicles. Today, Tesla vehicles are not autonomous.
However, the hardware is standard in all new Model 3, S and X vehicles and customers can shell out an additional $ 6,000 for the FSD package. The self-driving hardware is found in the Autopilot engine control unit, or ECU, module described by Tesla as the "vehicle brain." This module is assembled in Shanghai, China, by a company called Quanta Computer.
Tesla warned that higher rates on the "brain of the vehicle" could cause economic harm to society.
The other refusal was actually a request from a Tesla supplier, SAS Automotive USA, which manufactures the central display of model 3. The central display is part of the multimedia central unit and includes a touch screen of 17 inches displaying navigation, audio, temperature control, display of energy and all controls in the cabin. The screen is essentially a hub that allows the driver or passenger to control almost all the functions of the Model 3.
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