Why Tesla and Uber will not escape 25% tariffs – for now – TechCrunch

Tesla and Uber both had requests for tariff fees rejected by US trade employees, a decision that will force the companies to pay a 25% tariff or seek new suppliers.

Reuters was the first to report the decision of the office of US trade representatives. TechCrunch previously reported on the Trump Administration's refusal to exclude the "brain" of Tesla's Autopilot technology from punitive import tariffs.

Last year, Trump administration introduced 25% tariffs on a number of imports, including electronics, to try to reduce US trade deficits with China. Tesla and Uber are among the US companies that have requested relief on these charges.

At the end of December, Tesla filed an Exemption Request on the Model 3's car computer, including its media controller, connection board, and Advanced Driver Assistance System (ADAS) hardware. Uber applied for exemption on their Chinese-made electric bikes.

In a May 29 letter, USTR denied Tesla requests, stating that the model 3 car computer and the center screen are products that are "strategically important" or "related to the China team 2025 or other Chinese industrial programs." [1[ads1]9659006] Made in China 2025 is China's strategic plan to move away from manufacturing to produce high-value goods, especially in AI, electric vehicles, and robotics. The White House has noted that Made in China is a direct threat to US domestic technology and automotive companies.

Tesla refused to comment on the decision.

Earlier this year, Tesla presented a new custom chip designed to enable what it describes as full self-propelled (FSD) operation for all of its new cars. Today, Tesla vehicles are not self-propelled.

However, the machine is standard in all new Model 3, S and X cars, and customers can pay an additional $ 6,000 for the FSD software package. The self-propelled hardware lives in the Autopilot engine management unit, or ECU, a module Tesla describes as "the brain of the vehicle." This module is assembled in Shanghai, China, by a company called Quanta Computer.

Tesla notified that higher rates on the core of the core could cause financial damage to the company.

The second refusal was actually a request from a Tesla supplier, SAS Automotive USA, which makes the middle screen the model 3. The center screen is part of the overall media center unit and includes a 17-inch touch screen displaying navigation, media, audio , climate control, energy display and all controls in the cabin. The screen is essentially a node that allows the driver or passenger to control almost all of the features of model 3.

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