China gives Tesla a pass on trade-war tariffs

Earlier this month, China said it would reinstate some car tariffs it paused in April, including a 25 percent levy on vehicles from the US and a five percent tariff on auto parts. They’re set to come into force December 15th as part of a wave of tariffs China announced in response to the latest US round of levies on imports from the Asian superpower. Those were the most recent salvos in the ongoing trade war between the countries.

Tesla and other carmakers had faced total tariffs of as much as 50 percent on vehicle sales in China. The company was said to be planning price raises on its cars in the country following a dip in the yuan exchange rate and the pending tariffs. Tesla is also building a factory in Shanghai, and CEO Elon Musk visited the country this week.

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