After the Trump administration suspended new tariffs on most countries for 90 days, increasing tariffs on the Chinese market to 145%, the Chinese government subsequently retaliated with a 125% tariff on US imports. This resulted in Tesla halting sales of its Model S and Model X electric vehicles in the Chinese market.
However, the suspension of sales of the Model S and Model X electric vehicle models will not actually have an impact on Tesla's sales in the Chinese market. This is because these two electric vehicle models currently only maintain sales of inventory models in the Chinese market. At the same time, the entry-level Model 3 and the more cost-effective Model Y sold in the Chinese market are both produced in the Shanghai Super Factory, so there will be no tariff issues.
However, if the inventory of vehicles in the Chinese market is sold out, only Model 3 and Model Y models will remain for sale.
Compared with the US government's continued increase in tariffs on Chinese imports, the EU may consider opening up more Chinese electric vehicle imports, which is expected to further impact the development of the EU's existing electric vehicle market, and may also further squeeze the European and American electric vehicle markets at lower prices.
