Tesla Sues US Government over Tariffs on Chinese Imports

Electric car maker Tesla has filed a lawsuit against US President Donald Trump's administration to put an end to what he considers "unlawful" tariffs levied on some parts imported from China, reports AFP.

The complaint filed Monday by the New York International Trade Court notes that the 25% tariffs levied by the US Trade Representative on the list of goods, including spare parts such as terminals Tesla uses in its vehicles, are "arbitrary, capricious and an abuse of discretion."

The tariffs came in the midst of a larger trade war between Washington and Beijing, and Tesla is requesting their cancelation along with a "refund, interest" of duties already paid.

The levies were introduced as part of Washington's attempt to wean its factories from Chinese technology and reduce the yawning trade deficit with China.

After Trump took office in 2017, the US and China engaged in months of trade war, and amid a "Phase One" agreement signed earlier this year to mark a temporary ceasefire in the dispute, 25 percent additional tariffs remain on the equivalent of $250 billion in Chinese goods.

Beijing has retaliated for these levies, while Washington is aiming both to reduce its trade deficit and reform Chinese commerce practices it considers “unfair.”