Tesla begins to throw in the towel in China over tariffs, these two models are no longer for sale

Elon Musk may have thought he could escape Trump's wrath... Wrong. Customs tariffs have just grounded the Model S and X in China. A close-up of a strategic setback for the electric giant, stuck between two presidents and two continents.

A hard blow for Tesla on the Chinese market: the brand has suspended orders for the Model S and X, its high-end sedans. The official reason? Chinese import taxes, raised to 125% in response to Trump's measures, making these models, manufactured in the United States, too expensive. Only the Model 3 and Model Y, produced locally in Shanghai, escaped the hemorrhage.

A logical, but symbolic decision. The S and X only represent a marginal share of Tesla's sales in China. The company will sell off its existing stocks, then draw a line under them. Behind the scenes, this is an opportunity for Musk to (once again) criticize Trump's trade policy, which he considers counterproductive.

Also read – A new danger on the road: Trump buys a Tesla

Musk vs. Trump: the clash of egos

"Dumb as a sack of bricks": these are the words Elon Musk used to criticize Peter Navarro, Trump's former trade advisor, after the latter criticized his dependence on imports. The Tesla CEO, despite being close to the former president, is stepping up attacks on his pricing strategy. He's even sharing videos of economists praising free trade... A snub to the "America First" doctrine.

The problem? Critical components, like rare earths, aren't swept under Uncle Sam's rug. The result: manufacturing in the United States is expensive, and exporting becomes mission impossible in the face of Chinese taxes. Trump defends his tariffs as a way to reduce debt, but economists are alarmed: this trade war could plunge the country into recession.

Tesla isn't the only tech company in the crosshairs. Apple, whose iPhones are assembled in China, has seen its stock fall by 20% this year. One analyst even estimates that a "made in the USA" iPhone would cost $3,500. Amazon and Meta, dependent on Chinese products and advertising, are also sweating. big drops.

In Europe, the situation is different: the EU plans to import more Chinese electric vehicles, directly threatening Tesla and its ilk. A blow to American manufacturers, caught between explosive costs and aggressive competition.