Tesla sues US government over tariffs on Chinese imports

Newly manufactured Tesla electric cars are pictured in a storage area in Britain. PHOTO: AFP

NEW YORK (AFP) - Electric car manufacturer Tesla has filed a lawsuit against US President Donald Trump's administration, aiming to end what it calls "unlawful" tariffs imposed on certain parts imported from China.

The lawsuit, filed on Monday in the New York-based Court of International Trade, says the 25 per cent tariffs imposed by the US Trade Representative on a list of products including spare parts like terminals that Tesla uses in its cars are "arbitrary, capricious, and an abuse of discretion."

The tariffs came amid a wider trade dispute between Washington and Beijing, and Tesla seeks their cancelation along with a "refund, with interest" of duties already paid.

The levies were imposed as part of an effort by Washington to wean its manufacturers off Chinese technology and reduce the yawning trade deficit with China.

The US and China engaged in months of trade conflict after Trump took office in 2017, and despite a "phase one" deal signed earlier this year marking a partial truce in the dispute, additional tariffs of 25 per cent remain on the equivalent of US$250 billion (S$340 billion) in Chinese goods.

Beijing has retaliated for these levies, while Washington is aiming both to reduce its trade deficit and reform Chinese commerce practices it considers "unfair."

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