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Tesla has suspended the import of parts for its Cybercab and Semi truck from China after President Trump raised tariffs to 145 percent on Chinese goods imports. This news came in from a person with direct knowledge amidst the trade war going on between the two countries.

This move could affect Tesla’s plans for mass production of the above two models, which CEO Elon Musk has been pitching to investors as major innovations providing growth momentum for the automaker.

Tesla was ready to absorb the initial 34 percent tariff set by Trump on Chinese goods, but could not go beyond that after the tariffs were raised substantially. This led to the shipping plans being suspended according to the insider.

Trump raised additional tariffs to 84% on April 9 and has since increased that to 125%, bringing the total tariffs on Chinese goods exported to the U.S. to 145%.

Tesla was expecting to start receiving the component shipments in the coming months. Trial production of the two models was slated to begin in October this year, followed by mass production in 2026. The Cybercab is to be produced in Texas and Semi in Nevada.

The source also said that Tesla has, for the past two years, been increasing the proportion of parts sourced from North America for its U.S. factories in view of potential U.S. tariffs on China.

Earlier this week, Trump said he was considering changes to the 25 percent tariffs imposed on foreign cars and auto parts imports from Mexico, Canada and other places.

Tesla plans to roll out a robotaxi service with a fleet of Cybercabs and has been seeking approvals from state governments. A concept was revealed last October with a promise to start building it by 2026 at a price of less than $30,000. The EV maker also plans to ramp up production of the Semi electric trucks in 2026 and accelerate deliveries of long-overdue orders to customers including Pepsi.

The impact on Tesla’s key business plan shows how Trump’s tariffs have hurt Musk, despite being meant to boost U.S. local manufacturing.

At the moment, it is not clear how long the shipping suspension will last.

Tesla has also stopped taking new orders for the Model S and the Model X as China imposed a retaliatory 125% tariff on U.S. goods.

Source Reuters

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