Tesla suspends vehicle sales in China due to tariff war
Published April 11th, 2025 - 07:14 GMT
ALBAWABA – Tesla, the American multinational automotive and clean energy company, has announced the suspension of its vehicle sales in China due to the ongoing tariff war between the United States and China. Also Read A list of the goods most affected by the current tariff war Ongoing tariff war
The United States (US) President, Donald Trump, announced the impose of new tariffs that significantly impacted China with an additional 50% total of tariff, bringing the overall total to 104%.This decision immediately affected China's economy and its demand for oil imports. In response, China announced a 34% tariff on American products and goods.
Trump's recent tariffs are fueling a global economic conflict, contributing to recession, inflation, and reduced oil demand in China, the US, and worldwide. Tesla suspends its vehicle sales in China
The company announced the suspension of its luxury Model S and Model X vehicles in the Chinese market. The statement was published on Tesla's official Chinese website, shortly after US President Donald Trump announced an additional 145% tariff on Chinese imports.
Tesla faced increased competition from Chinese brands, including BYD, which has contributed to a decline in both Tesla's sales and stock value. (Shutterstock)
Additionally, WeChat, the Chinese instant messaging, social media, and mobile payment app, removed Tesla's popular ordering options for the two vehicles, according to Reuters.Notably, Tesla's sales in China reached a record high in 2024, with an approximate total of 657,000 units.
However, in recent months, the company has faced increased competition from Chinese brands, including BYD, which has contributed to a decline in both Tesla's sales and stock value.
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