Tesla files lawsuit against Trump administration over tariffs

Daniel Fowler
September 25, 2020

Several other companies are reportedly also suing after the Trump administration piled tariffs on Chinese imports under Section 301 of the Trade Act of 1974.

A lawsuit filed in the U.S. Count of International Trade targets the government and U.S. Trade Representative Robert Lighthizer, taking issue with the tariffs known as List 3 and List 4.

The tariffs came amid a wider trade dispute between Washington and Beijing, and Tesla seeks their cancelation along with a "refund, with interest" of duties already paid. It is asking for a refund of the money it has paid, plus interest.

The US and China engaged in months of trade conflict after Trump took office in 2017, and despite a "phase one" deal signed earlier this year marking a partial truce in the dispute, additional tariffs of 25 percent remain on the equivalent of $250 billion in Chinese goods.

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The device also features Emergency Crash Assist, which automatically calls first responders if it detects a major crash. This feature is available on the Model S, X, Y, and 3, protecting the vehicle from external threats silently.

Last year, the United States administration rejected the company's bid to override the 25% tariffs on auto parts manufactured in China - in particular, computer and display screens used in the Model 3 electric vehicle.

In 2018, the company estimated that additional tariffs on parts sourced from China would decrease gross profit by 50 million US dollars in the fourth quarter of the year.

Mercedes-Benz argued that USA law "did not confer authority on defendants to litigate a vast trade war for however long, and by whatever means, they choose", AFP reported.

The case is Tesla Inc. v. U.S.

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