California’s pioneering electric-vehicle manufacturer Tesla is suing the federal government and Trade Representative Robert Lighthizer over the Trump administration’s tariffs on items the automaker imports from China.
Tesla, which in June passed Toyota to become the carmaker with the largest market capitalization, wants the Trump administration to end the tariffs and refund Tesla what it paid plus interest.
The lawsuit was filed in the New York-based U.S. Court of International Trade, which has nationwide jurisdiction over civil actions arising out of the customs and trade laws of the United States.
The Trump tariffs placed 25% tariffs on $200 billion in imported goods and 7.5% tariffs on another $120 billion in imported goods. The lawsuit blasted the tariffs as “arbitrary and capricious.”
Tariffs aren’t paid by the country where products originate, but by the American companies that important them, and then passed on to American consumers. The intent of the China tariffs was to make those products more expensive and thereby help U.S. producers.
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