Trump’s Tariff Bomb Just Blew Up Tesla’s Cybercab And Semi Rollout

- Tesla has reportedly dropped plans for American imports of critical parts from China.
- The components are required for Tesla’s Cybercab robotaxi and Semi truck models.
- Tesla was willing to absorb a 34% tariff, but the new 145% rate forced shipments to be halted.
Tesla has a lot riding on its Cybercab robotaxi, but the program has hit a major snag, and CEO Elon Musk’s sometimes best buddy, President Trump is to blame. The automaker has been forced to drop its plans to ship essential Cybercab components from China as a result of Trump slapping enormous tariffs on Chinese imports, a report claims.
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The automaker expected to start sending parts to the US from China in the next few months, necessary to begin trial production of both the Cybercab and the Semi truck, the latter of which has so far only been produced in tiny quantities. The plan was to scale up to full production of both models in 2026.
Tariffs Throw a Wrench in the Works
Trump’s announcement of a 34 percent tariff wasn’t great news, but Reuters sources say Tesla was prepared to absorb the financial pain. But when Trump’s tit-for-tat tariffs battle escalated to the point where import duty on Chinese imports had reached 145 percent, Tesla slammed on the brakes.
Exactly how long Tesla will keep its foot on the brakes is unclear, since no one, perhaps not even Donald Trump himself, knows the duration of the massive tariffs. But the US President revealed earlier this week that he was considering making changes to the 25 percent tariff on imported auto parts built in Canada, Mexico, and other regions, and has recently announced an exemption on electronic devices such as iPhones which are made in China.

Tesla’s US Sourcing Strategy
Reuters says Tesla has, for the past couple of years, been increasing the amount of parts it gets from within US borders because it sensed that tariffs might one day come into effect. How quickly Tesla can switch suppliers and get Cybercab and Semi components from America isn’t clear – we’ve asked the question, but don’t expect Tesla to reply.
Tesla unveiled its long-awaited Cybercab last fall, a Honda CRX-shaped pod with scissor doors and no steering wheel, and is currently working on getting approvals to begin testing and operating driverless cars in the US and beyond.