Tesla sues to block Trump's China tariffs

Tesla claims certain tariffs are unlawful

Tesla Inc. is suing to block the Trump administration’s tariffs on certain parts the electric-car maker buys from China.

The lawsuit, filed in New York in the U.S. Court of International Trade, said the duties imposed are unlawful and asks for payments to be returned, with interest.

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Tesla argues the goods included on List 3 and List 4A should be declared void. The $200 billion of goods on List 3 are subject to a 25% tax. List 4A is made up of about $120 billion of products that are currently being hit with a 7.5% duty.

Both lists consist of hundreds of goods, ranging from food to textiles to electronics. Tesla did not specify which tariffs it was contesting.

The Trump administration imposed a series of tariffs on China amid a tit-for-tat trade war that began in 2018 and cooled in January 2020 with the signing of the phase one deal.

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The deal included a promise from Beijing to purchase an additional $200 billion of U.S. products over the next two years and commitments to halt intellectual property theft, refrain from currency manipulation and cooperate in financial services.

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The U.S., for its part, reduced tariffs on some products made in China but kept the duties on $375 billion worth of merchandise.