Tesla has suspended plans to source components from China for its upcoming Cybercab and Tesla Semi vehicles due to escalating U.S. tariffs on Chinese imports under former President Donald Trump’s trade policy, according to a person familiar with the matter.
The automaker had intended to import certain parts from China for its next-generation vehicle programs, which are scheduled to begin production later this year at its Gigafactory in Texas and a new facility in Nevada. Tesla had initially planned to proceed despite a 34% tariff rate but halted the sourcing strategy after recent tariff increases pushed the rate to 145%.
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The tariffs are part of a broader trade war initiated under Trump’s administration, which has disrupted global supply chains for manufacturers across multiple industries. Tesla, which imports many parts for its U.S. vehicle programs from overseas—including China, Mexico, Canada, and Europe—has not been spared from the impact.
As a result of the rising trade tensions, the electric vehicle maker has also paused new orders for its Model S and Model X vehicles in China, following retaliatory tariffs imposed by the Chinese government.
See also: Tesla Faces ‘Significant’ Impact from New U.S. Auto Tariffs, Says Elon Musk
Tesla aims to begin limited production of the Cybercab and Semi later this year, with plans to ramp up to full-scale manufacturing in 2026. However, sourcing challenges triggered by shifting trade policies could complicate its timelines.
Source: Reuters
