Trump’s tariffs on Chinese parts halt Tesla’s Cybercab and Semi plans

Tesla’s plans to import components from China for its new Cybercab and Semi electric truck models have been put on hold due to rising tariffs imposed by former President Donald Trump, according to a source familiar with the matter. These tariffs, introduced as part of an ongoing trade war with China, are significantly disrupting Tesla's production timeline for its innovative vehicle models in the United States.

Initially prepared to manage a 34% tariff, Tesla found itself unable to move forward when tariffs were raised to 84% on April 9 and later to a staggering 125%, totaling 145% on Chinese imports. As a result, the company had to suspend shipments of essential parts, the source said.

Tesla had intended to begin receiving these parts in the coming months to launch trial production by October and begin mass production in 2026. Cybercab was set for assembly in Texas, while the Semi truck would be built in Nevada. The duration of the production delay remains uncertain.

Over the past two years, Tesla has worked to increase the share of components sourced from North America in anticipation of potential tariff increases. Nevertheless, the abrupt spike in import duties has disrupted even these precautionary strategies.

While addressing the media at the White House, Trump mentioned that he may adjust the 25% tariffs on auto imports from Canada, Mexico, and other countries. These tariffs could significantly raise vehicle prices, although he acknowledged that automakers need time to transition production domestically.

Tesla declined to comment on the situation. Meanwhile, the company continues to seek regulatory approvals to launch its robotaxi service, which will use the Cybercab model. The two-door, steering wheel-free electric vehicle was revealed last October, with plans to begin production by 2026 at an estimated cost of under $30,000.

Tesla is also preparing to scale up Semi truck production and fulfill delayed orders, including those from Pepsi. These disruptions underline the unintended consequences of Trump’s trade policy, particularly for Elon Musk a vocal supporter of free trade who has publicly criticized tariffs.

According to reports, Musk has personally urged Trump to reconsider the sweeping tariffs. The company has also stopped taking orders for the Model S and Model X following China's retaliatory move to impose a 125% tariff on American goods.

S&P reported in February that U.S. exports represented about 15–20% of the value of Chinese automotive parts in recent years.