Elon Musk-founded Tesla has discontinued accepting fresh orders for its Model S and Model X vehicles via its Chinese website, as reported by Reuters on Friday, amid escalating trade tensions between the world’s leading economies.
Customers can no longer place orders for these imported models through Tesla’s WeChat mini programme account. Both vehicles are manufactured in the United States before being exported to China.
The firm offered no explanation for this decision, which coincides with China’s implementation of 84% tariffs on US products, following Trump’s imposition of 145% duties on Chinese imports.
The American automotive manufacturer produces Model 3 and Model Y vehicles at its Shanghai facility, serving both domestic Chinese market and European exports, which constitute the bulk of its sales.
According to Li Yanwei, an analyst at the China Auto Dealers Association, China imported 1,553 Model X cars and 311 Model S cars in 2024.
This comes amid an escalating trade war between the US and China, which began with President Trump hiking tariffs and China swiftly retaliating.
China-US trade war
The US, this week, dramatically raised tariffs on Chinese imports to 145% overall, citing unfair trade practices. China quickly retaliated with 84% tariffs on American goods.
President Trump pulled back tariffs on other nations, offering a 90-day negotiation window, but held firm on China, declaring other countries are “lining up to negotiate.” In response, China accused the US of bullying and violating global trade norms, vowing to “fight to the end.”
China has stepped up its diplomatic efforts, especially in Europe and Southeast Asia, to build alliances. Premier Li Qiang and Commerce Minister Wang Wentao reached out to EU and ASEAN leaders, though responses have been mixed. Key nations like India, Australia, and even Russia have not joined China’s side.
Markets reacted sharply — surging in Asia and Europe due to Trump’s partial retreat, while US markets dipped slightly. Despite the economic shockwaves, both nations appear unwilling to back down, raising fears of long-term disruption to global trade.
