Tesla halts Model S, X orders in China amid deepening US-China trade war
Beijing: Tesla has stopped accepting new orders for its Model S and Model X vehicles in China, according to a Reuters report on Friday, as trade tensions between the US and China spiral following tit-for-tat tariff hikes.
The company has removed the option to place orders for these imported models from both its Chinese website and its WeChat mini-programme.
The two premium models are manufactured in the United States and shipped to China. Tesla did not provide a reason for the move.
The development comes days after China raised tariffs on American goods to 84%, retaliating against US President Donald Trump’s decision to raise duties on Chinese imports to 145%. This escalated a fresh trade war between the world’s two biggest economies.
Tesla’s locally made Model 3 and Model Y—produced at its Shanghai Gigafactory—continue to be available for sale and remain the company's top sellers, catering to both the Chinese market and exports to Europe.
According to Li Yanwei of the China Auto Dealers Association, in 2024, China imported just 1,553 Model X vehicles and 311 Model S cars, highlighting the niche market for these models.
As Washington and Beijing remain locked in a tariff standoff, global markets have responded sharply.
Asian and European indices rallied on news of Trump’s partial rollback for other countries—offering a 90-day negotiation window—while US stocks dipped slightly.
However, the US remains firm on China, with Trump declaring, “Other countries are lining up to negotiate.”
China, for its part, has labelled the US moves as “bullying” and vowed to “fight to the end.”
Diplomatic outreach has intensified, with Chinese leaders engaging the EU and ASEAN, but key players like India, Australia, and Russia have yet to side with Beijing.
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