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Tesla Sues to Block Unlawful Trump Tariffs on Chinese-Imported Goods

Tesla Inc. is suing the federal government and U.S. Trade Representative Robert Lighthizer to block the Trump administration from collecting tariffs on certain items the electric car maker imports from China.

The California-based electric vehicle and clean energy company filed its lawsuit Monday in the U.S. Court of International Trade, arguing that the Trump administrations tariffs on the goods are unlawful. It seeks a cancellation and refund of the duties it has already paid, with interest, Bloomberg first reported.

The tariffs were “arbitrary, capricious, and an abuse of discretion,” Teslas filing said. U.S. Customs and Border Protection Commissioner Mark Morgan is also named as a defendant in the suit.

It comes after Lighthizers office in 2019 blocked Teslas request for relief from duties of 25 percent on the companys Model 3 electric car computer and screen. U.S. trade officials said at the time that the items use technologies that are of strategic importance to Beijings national security programs.

Tesla said it would suffer economically due to the higher costs imposed by the tariffs.

“Increased tariffs on this particular part cause economic harm to Tesla, through the increase of costs and impact to profitability,” the company wrote in its request for relief last year. “Due to the complexity of the Model 3 Car Computer and the demanding timelines necessary for Teslas exponential growth, Tesla is unable to find another manufacturer to meet our requirements.”

Some $200 billion worth of goods, known as list 3, are currently being hit by a 25 percent duty, while another group of Chinese-made goods worth $120 billion, known as 4A, are subject to a 7.5 percent duty.

List 3 went into effect 2 years ago, while list 4A was hit by the tariff last year. The goods range from electric goods to raw materials.

The company in its lawsuit argues that both sets of items should be declared void, but did not specify which duties it was challenging, or how much it has paid so far, reported Read More – Source