WASHINGTON: Tesla has asked the Trump administration to exempt the Chinese-made car computer “brain” of its new Model 3 sedan from 25 percent tariffs imposed in August, saying they threaten the electric carmaker’s bottom line.
“Increased tariffs on this particular part cause economic harm to Tesla, through the increase of costs and impact to profitability,” the company said in a previously unreported request for tariff relief from the government.
Led by tech billionaire Elon Musk, Tesla is among a host of companies, including No. 1 US automaker General Motors, to warn of growing costs related to the tariff war between the world’s two largest economies.
The Chinese-made computer, used by Tesla in the car assembled in Fremont, California, was among $16 billion in imports that were hit with 25 percent tariffs by the United States Trade Representative’s Office in 2018.
In a redacted request posted on a government website by the USTR on December 17, Tesla did not identify the supplier of the computer. But it said it had been unable to find another manufacturer “with the required specifications, at the volume requested and under the timelines necessary for Tesla’s continued growth.”
Tesla, which called the Model 3’s computer “the brain of the vehicle,” added that “choosing any other supplier would have delayed the (Model 3) program by 18 months with clean room setup, line validation, and staff training.”
Using a new supplier “substantially increases the risk of poor part quality that could lead overall vehicle quality issues that would impact the safety of our vehicles and the consumer acceptance of the final product,” Tesla added in its request for tariff relief.
Tesla declined to comment on the tariff matter on Friday. But it has been aggressively cutting costs as it works to meet production goals for the Model 3, which has become a top-selling luxury sedan on the US market alongside the larger Model S.
Other automakers have sought similar exemptions but have not yet received an answer.
GM in late July sought an exemption to a 25 percent US tariff on its Chinese-made Buick Envision sport utility vehicle. The Envision accounted for nearly 15 percent of US Buick sales last year, even as sales fell by 27 percent.
In October, GM also sought exclusions for about two dozen parts, including push button ignition switches and transmission bearings. Nissan Motor Co. and Fiat Chrysler Automobiles NV have also filed exclusion requests for parts, while Uber Technologies Inc. asked for an exclusion for electric bikes rented through the Uber app.
The Trump administration has imposed 25 percent tariffs on a total of $50 billion in annual Chinese exports and 10 percent tariffs on an additional $200 billion in Chinese exports. The tariffs were in response to what the Trump administration calls China’s unfair trade practices.
Tesla urges tariff exemption for Chinese-made car computer ‘brain’
Tesla urges tariff exemption for Chinese-made car computer ‘brain’
- Tesla is among a host of companies to warn of growing costs related to the tariff war between the world’s two largest economies
Saudi Arabia, Japan trade rises 38% between 2016 and 2024, minister says
RIYADH: Trade between Saudi Arabia and Japan has increased by 38 percent between 2016 and 2024 to reach SR138 billion ($36 billion), the Kingdom’s investment minister revealed.
Speaking at the Saudi-Japanese Ministerial Investment Forum 2026, Khalid Al-Falih explained that this makes the Asian country the Kingdom’s third-largest trading partner, according to Asharq Bloomberg.
This falls in line with the fact that Saudi Arabia has been a very important country for Japan from the viewpoint of its energy security, having been a stable supplier of crude oil for many years.
It also aligns well with how Japan is fully committed to supporting Vision 2030 by sharing its knowledge and advanced technologies.
“This trade is dominated by the Kingdom's exports of energy products, specifically oil, gas, and their derivatives. We certainly look forward to the Saudi private sector increasing trade with Japan, particularly in high-tech Japanese products,” Al-Falih said.
He added: “As for investment, Japanese investment in the Kingdom is good and strong, but we look forward to raising the level of Japanese investments in the Kingdom. Today, the Kingdom offers promising opportunities for Japanese companies in several fields, including the traditional sector that links the two economies: energy.”
The minister went on to note that additional sectors that both countries can also collaborate in include green and blue hydrogen, investments in advanced industries, health, food security, innovation, entrepreneurship, among others.
During his speech, Al-Falih shed light on how the Kingdom’s pavilion at Expo 2025 in Osaka achieved remarkable success, with the exhibition receiving more than 3 million visitors, reflecting the Japanese public’s interest in Saudi Arabia.
“The pavilion also organized approximately 700 new business events, several each day, including 88 major investment events led by the Ministry of Investment. Today, as we prepare for the upcoming Expo 2030, we look forward to building upon Japan’s achievements,” he said.
The minister added: “During our visit to Japan, we agreed to establish a partnership to transfer the remarkable Japanese experience from Expo Osaka 2025 to Expo Riyadh 2030. I am certain that the Japanese pavilion at Expo Riyadh will rival the Saudi pavilion at Expo Osaka in terms of organization, innovation, and visitor turnout.”
Al-Falih also shed light on how Saudi-Japanese relations celebrated their 70th anniversary last year, and today marks the 71st year of these relations as well as how they have flourished over the decades, moving from one strategic level to an even higher one.
