New York: Electric car manufacturer Tesla has filed a lawsuit against the administration of US President Donald Trump to end the so-called “illegal” tariffs on certain parts imported from China.
The lawsuit filed in the New York International Trade Court on Monday stated that the 25% tariff imposed by the U.S. Trade Representative on Tesla’s list of products such as terminals and other parts used in its cars was “arbitrary, capricious and abuse of discretion.”
The tariffs come from the wider trade dispute between Washington and Beijing, and Tesla seeks to cancel tariffs and “refund interest” on tariffs already paid.
The imposition of tariffs is part of Washington’s efforts to get rid of its manufacturers’ dependence on Chinese technology and reduce the trade deficit with China.
After Trump took office in 2017, the United States and China were caught in a trade conflict for several months. Although the “phase one” agreement signed earlier this year marked a partial ceasefire in the dispute, it still imposed 25% tariffs on $250 billion. A 25% tariff is levied. Domestic products.
Beijing has retaliated against these tax rates, while Washington aims to reduce the trade deficit and reform what it considers “unfair” Chinese business practices.