Tesla reacts to trade dispute between US and China
Author: Osman Cetinkaya
Price increases up to $ 37,600
The People’s Republic of China and the US are in a customs war. At first, President Donald Trump imposed customs on Chinese goods worth $ 34 billion. Now China has followed on Friday and raised customs with the same rate. In addition to car imports from the US, agricultural products such as soybeans, cotton and pork are also affected.
The California car maker Tesla is also affected by the customs war between the US and China. Due to the increased customs, Tesla has significantly increased prices in China. The prices were increased over the weekend by 150,000 to 250,000 yuan per model, equal to 22,600 to 37,600 dollars. The X and S models now cost over $ 20,000 more, according to the industry service Electrek.
The Californian group has not commented on the price increases so far. But other car makers are also responding to the proposed higher import duties on US cars in China. The German car manufacturer BMW has also raised its prices in the People’s Republic.
The Chinese market accounts for 17 percent of the Group’s total sales, and is therefore one of the most important foreign markets of Tesla. Since China wants to promote e-mobility because of the heavy air pollution, Tesla has focused on the People’s Republic. It was even planned to build a factory in China. According to estimations, Tesla is currently exporting 15,000 cars a year to China.