In a May 29 letter, the USTR denied Tesla’s requests, stating that the Model 3 car computer and center screen are products that are “strategically important” or “related to Made in China 2025 or other Chinese industrial programs.”
Made in China 2025 is China’s strategic plan to move away from manufacturing to produce higher-value goods, particularly in the areas of AI, electric vehicles and robotics. The White House has remarked that Made in China is a direct threat to U.S. domestic technology and automotive companies.
Tesla declined to comment on the decision.
Earlier this year, Tesla unveiled a new custom chip designed to enable what it describes as full self-driving (FSD) operation for all of its new vehicles. Today, Tesla vehicles are not self-driving.
However, the hardware is standard in all new Model 3, S and X vehicles and customers can pay an additional $6,000 for the FSD software package. The self-driving hardware lives within the Autopilot engine control unit, or ECU, a module that Tesla describes as the “brain of the vehicle.” This module is assembled in Shanghai, China, by a company called Quanta Computer.
Tesla warned that higher tariffs on the “brain of the vehicle” could cause economic harm to the company.
The other denial was actually a request by a Tesla supplier, SAS Automotive USA, that makes the center screen for the Model 3. The center screen is part of the overall media center unit and includes a touchscreen that displays navigation, media, audio, climate control, energy display and all in-cabin controls. The screen is essentially a hub that allows the driver or passenger to control nearly all the functions of the Model 3.