Tesla sues US govt over tariffs on Chinese imports, seeks refund from Trump administration

Elon Musk’s Tesla has decided to sue the US government over the Trump administration's tariffs on items the electric car manufacturer imports from China. According to CNBC reports, with the lawsuit filed in the US Court of International Trade, Tesla is not only seeking the court to declare two batches of Trump administration-imposed tariffs to be void but also to refund the company the amount it paid with interest.

The specific tariffs that Tesla’s lawsuit has mentioned are known as List 3 and List 4 that went into effect on 2018 and 2019 respectively. While the List 3 currently places 25 percent duties on $200 billion of the imported goods from the Asian superpower that has been long involved in one of the biggest trade wars with the United States, the List 4 consists of 7.5 percent tariff on $120 billion on Chinese imports. Both the lists that were declared by the US government in official releases have included a specific item list that ranges from raw materials to even the electronic components. 

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Tesla did not mention amount, items in lawsuit

Tesla’s lawsuit has reportedly not described the items that it was paying the hefty tariffs or the total amount. However, both the company and US Trade Representative Robert Lighthizer have not yet returned with a comment on the same. In Wednesday’s court filing, Elon Musk’s company called the imposition of List 3 and List 4 duties as “arbitrary and capricious” citing the lack of “meaningful opportunity” for any comment while also failing to take note of the relevant factors when the decision was made. 

The lawyers reportedly also argued that the duties have failed to make a “rational connection” between the facts that were derived by the US government with the choices made. Apart from naming Lighthizer, Tesla’s lawsuit has also named the acting commissioner of US Customs and Border Protection, Mark Morgan, as a defendant. 

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Tesla applied for waivers in 2019

Since the US-based firms were provided with a choice of requesting waivers on specific items in the process, Tesla has applied for the same back in 2019 on items including artificial graphite, silicon oxide, and door ring tailor welded blanks. Further, as per the USTR website, all three were granted by the Trump administration only with an expiration date of August 2020.

Last year, the American government had also dismissed the request of the electric car manufacturer for the relief of 25 percent tariffs on its Model 3’s car computer and screen citing the importance of the parts to China’s national security programs.

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