Tesla's duty relief
On June 24, the Trade Ministry approved Tesla (TSLA) "to waive 10% tariffs on imported aluminum from Japan," according to a Reuters report. The company imports aluminum produced by Nippon Light Metal to make battery cells for its cars at its Gigafactory 1 in Nevada, California.
The report claimed a document from the Ministry of Trade on June 5. The report claimed that Tesla has received a waiver from the aluminum duties for one year. In the document, the Ministry of Commerce agreed that the United States does not produce aluminum "in a sufficient and reasonably available amount or satisfactory quality."
Tesla denied waiver of other tariffs
The news of the cancellation of Tesla's aluminum import from Japan came a few weeks after the Trump administration refused to free Tesla Model 3's Chinese center screen and computer from customs.
According to a Reuters report, the US Trade Representative's office believes that these imported products are strategically important related to "Made in China 2025" or other Chinese industrial programs. "
Impact on Tesla
Like General Motors (GM) and Ford (F), Tesla has faced warmth from the ongoing trading tensions between the US and China over the past year. An increase in the Chinese import duty on US products urged Tesla to accelerate its Shanghai-based construction plan, which it began to build in January.
Despite Trump's previous denial of releasing Tesla's Chinese autopilot hardware, the latest tariff exemption from its imports of aluminum from Japan is likely to help the company save battery production costs.
On June 25 at 08:45 ET, the Tesla share rose 0.2% for the day in the pre-market session.