Tesla Models will cost more in China after tariffs on US vehicles
US electric vehicle maker Tesla’s exports to China are possibly on the verge of a possible slowdown because of a recent move by the Chinese government to increase import duties from the current 25% to a significantly high 40%.
The tariff-hike move by the Chinese government apparently underscores a retaliatory decision, resulting from the US government’s latest list of tariffs for Chinese goods. The move by the US government has escalated the ongoing trade war between the two countries.
The recent announcement by the Chinese government about an increase in tariff to 40% has delivered a hard blow to Tesla Motors, in terms of the cost of the electric vehicles which the company is presently selling in China.
Prior to the tariff hike by China, it was being projected that the tariffs in the country will probably be reduced from 25% to 15%. As such, Tesla was planning a massive EV push in the country.
However, with the tariffs having been increased by the Chinese government, the cost of Tesla’s Model S and Model X vehicles increased over this past weekend. The cost increase for the two vehicles ranges between 150,000 yuan to 250,000 yuan (~$22,600 to ~$37,600) depending on the versions.