Tesla halts Model S and X orders in China amid tariff turmoil
Tesla has stopped accepting orders for the Model S and Model X in China. The decision comes amid rising trade tensions between the U.S. and China. On Friday, China announced an increase in retaliatory tariffs on the U.S.
What you need to know
- Tesla suspended accepting new orders for the Model S and Model X in China. The decision was noted on Tesla's Chinese website and their WeChat account.
- China imposed a 125% tariff on American goods in response to tariffs introduced by the Trump administration, which may have influenced Tesla's decision.
- Tesla produces the Model 3 and Model Y in Shanghai. These cars are sold in China and exported to Europe, representing the majority of the company's sales.
Why did Tesla halt orders?
Tesla, the American automotive giant, unexpectedly suspended accepting new orders for its Model S and Model X in China. According to information published by Reuters, the decision may be related to escalating trade tensions between the U.S. and China.
China imposed a 125% tariff on American goods as a response to tariffs introduced by the Trump administration.
What's next for the Chinese market?
Tesla did not provide an official reason for halting orders, but analysts suggest it could be related to rising import costs.
In 2024, China imported 1,553 Model X vehicles and 311 Model S vehicles. The halt in orders could impact the company's financial results, especially since the Shanghai-produced Model 3 and Model Y comprise the majority of Tesla's sales in China.
Trump imposes tariffs on China
On Wednesday, Trump announced a suspension of retaliatory tariffs for 90 days. However, this information did not pertain to China.
On Thursday, the White House announced that the retaliatory tariff rate was increased from 84% to 125%, which, combined with previous tariffs imposed by U.S. President Donald Trump's administration, totals 145%.
