Elon Musk, Trump hash out Chinese automotive trade relations on Twitter

Pic Reuters

Pic Reuters

Tesla's Elon Musk just engaged in a little lobbying-by-tweet after months of battling Chinese government officials over terms to build a factory in the country. "They've known it for years, they never did anything about it". "It's got to change".

"We're going to be doing a reciprocal tax program at some point, so that if China is going to charge us 25% or if India is going to charge us 75%.we're going to be at those same numbers". Trump also took aim at vehicle tariffs in the European market on March 3: "If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US", Trump tweeted.

Musk served on a Trump White House advisory council early in the administration, but bolted when Trump backed away from the Paris climate deal. Trump said last week the US will implement a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, but didn't specify whether the tariffs will be applied to all imports or just imports from specific countries.

At a Cabinet meeting Thursday afternoon, Trump told reporters that he was intending to stick with the 25 percent tariff on steel and 10 percent on aluminum ahead of an expected announcement later in the day. "We just want fairness". "To me, that was more awesome than watching the rocket go up, because I've never seen that before". They're saving the boosters. They came back without wings or without anything, they landed so beautifully'. "They landed so beautifully", Trump added.

The Shanghai Municipal Commission of Commerce did not immediately respond to calls and faxed requests for comment. It´s like competing in an Olympic race wearing lead shoes'.

He then added that he had raised this issue with the Obama administration but "nothing happened".

"Hope this does not seem unreasonable", he tweeted in conclusion. Tesla's cars, like those of other United States automakers, end up costing as much as 50% more in China than in the USA due to tariffs.

Tesla announced the electric big rigs last November, and companies such as Walmart and DHL are reportedly interested. On Twitter, Musk complained this was unfair since there are "five 100 (per cent) China-owned EV auto companies in the US".

That's despite exclusively relying on exporting its cars from the USA to China where they are subject to a 25% import tariff.

A 25 percent import tariff on Teslas shipped to China "catapults the sticker price beyond the means of most consumers" and gives manufacturers of cheaper electric vehicles an advantage over Tesla, according to Bloomberg.

"We send our auto over there, pay 25 percent".

Latest News