Home News Tesla Gets Tariff Exemption For Japan-Sourced Aluminum Used In Battery Packs

Tesla Gets Tariff Exemption For Japan-Sourced Aluminum Used In Battery Packs


Tesla has been granted a tariff exemption on aluminum it spares from Japan that’s used in the production of battery cells at its its Gigafactory at Nevada.

Reuters reports that the auto maker made the petition into the U.S. Commerce Department in April, looking for an exemption on the 10 per cent tariff placed on aluminum. It revealed that the material is produced by Nippon Light Metal and desired a tariff exclusion for 10,000 tonnes.

In approving Tesla’s petition, the U.S. Commerce Department reported that aluminum “is not created in the United States at a decent and reasonably available level or of a satisfactory quality. ”

Read: Trump Administration Denies Chinese Tariff Relief Requests From Tesla, GM, Uber

Tesla says it’s the only U.S. maker of these battery types and plans on raising their production exponentially over the next few years. The purchase exemption applies for a single year and, in case aluminum tariffs remain in place the electric vehicle manufacturer is going to have to request an exemption within rsquo & 12 months; time.

While the government did grant Tesla a tariff exemption aluminum imported from overseas, it did recently deny a petition for the infotainment screen and Autopilot methods of this Model 3 to become exempt from 25 percent tariffs on select Chinese-made merchandise.

President Donald Trump first introduced tariffs on aluminium and steel into the United States at the start of June last year. It had been the first in a set of moves which triggered trade wars with Mexico, Canada, the European Union and China.

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