Tesla Inc (NASDAQ:TSLA) has suspended the import of key components from China for its upcoming Cybercab and Semi electric truck projects in the US due to a sharp escalation in tariffs imposed by president Donald Trump, according to a Reuters report.
The US raised tariffs on Chinese goods to a cumulative 145% in early April 2025, up from a previous 34%.
Tesla was able to absorb the earlier 34% tariff but found the new rate financially unsustainable leading to the suspension of shipments from China, according to the report that cited a source familiar with the matter.
It is not clear how long the suspension of shipments will last, the source added.
The suspension threatens to delay Tesla’s timeline for both the Cybercab, slated for production in Texas, and the Semi truck, planned for Nevada. Trial production for both was scheduled for late 2025, with mass production targeted for 2026.
Tesla has been gradually increasing the share of parts sourced from North America for its US factories over the past two years, anticipating potential tariff risks, the source added.
Shares of Tesla traded down 2.2% at about $248 in early trade on Wednesday.