Business
12:17, 10-Jul-2018
Tesla raises China prices to counteract tariffs
Updated
12:14, 13-Jul-2018
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US electric car brand Tesla has become one of the first major manufacturers to raise prices as a result of the trade war, with People’s Daily reporting increases in China of as much as 250,000 yuan (37,850 US dollars).
The price increases affect Tesla’s Model S and Model X vehicles, with Chinese consumers having to pay 150,000 to 250,000 yuan extra (22,710 to 37,850 US dollars) depending on the model and specifications.
On Friday, the US levied 25 percent tariffs on 34 billion US dollars’ worth of Chinese products. In response, China implemented the counter tariffs on the same scale on US goods.
China's Customs Tariff Commission of the State Council announced it would levy additional tariffs on 545 items worth about 34 billion US dollars, starting July 6, 2018.
Among those 545 items were electric cars and other vehicles. Prior to US President Donald Trump’s decision to place tariffs on Chinese imports, Tesla in May slashed its prices in China after reforms reduced import tariffs on electric vehicles from 25 to 15 percent.
US car giant Ford has already announced that it has no plans to alter its prices in the Chinese market, with the company set to absorb the additional costs arising from tariffs.
According to People’s Daily, on Monday a Ministry of Commerce spokesperson said measures would be taken to relieve the impact of the trade frictions between China and the US, including using “new tax income from the countermeasures… to relieve the impacts on companies and their employees.”