Elon Musk’s Tesla has reportedly halted imports of car parts from China needed for its upcoming Cybercab and Semi electric truck because of the trade war with Beijing — throwing a wrench into the company’s much-touted plans.
The EV pioneer had planned to import components from China to support production of the two new vehicles – but the plans became untenable once tariffs surpassed 34%, Reuters reported, citing a source with direct knowledge.
The Trump administration imposed total tariffs of 145% on Chinese imports last week, prompting Beijing to retaliate with a 125% tax on US goods.
Tesla has suspended imports of some car parts from China.Christopher Sadowski
Any supply chain difficulties will make it more difficult to meet Musk’s ambitious goals for fully autonomous vehicles.
Tesla has been seeking approval from state and federal officials to facilitate a fleet of taxis.
As The Post has reported, Tesla also faces increasing competition from Chinese electric car brand BYD, which recently surpassed Musk’s company in global sales and is in the middle of a major international expansion.
Secretary of State Marco Rubio on Wednesday shuttered the State Department’s controversial Global Engagement Center, which under the Biden administration faced heavy criticism from House Republicanswho said it was used to censor Americans.
Rubio made the decision “to preserve and protect the freedom for Americans to exercise their free speech” after the center — which was briefly rebranded during former President Joe Biden’s final months in office — “spent millions of dollars to actively silence and censor the voices of Americans they were supposed to be serving.
“It is the responsibility of every government official to continuously work to preserve and protect the freedom for Americans to exercise their free speech,” he said in a statement.
“That is why today I am announcing the closure of the State Department’s Counter Foreign Information Manipulation and Interference (R/FIMI), formerly known as the Global Engagement Center.”
The former Florida senator called out the “previous administration” in the statement, charging that its handling of the now-closed center was “antithetical to the very principals we should be upholding and inconceivable it was taking place in America.”
“It is the responsibility of every government official to continuously work to preserve and protect the freedom for Americans to exercise their free speech,” Secretary of State Marco Rubio said.via REUTERS The State Department had previously notified Congressof its intention to close the GEC, which had effectively stopped operating in December after lawmakers voted against funding it for the current fiscal year.
Republicans began taking aim at the GEC after journalist Matt Taibbi revealed the Biden administration had used it to pressure American social media platforms early in the COVID-19 pandemic to censor various individuals and news organizations, purportedly to counter “disinformation,” such as theories that the virus leaked out of a laboratory in China.
“We learned Twitter, Facebook, Google, and other companies developed a formal system for taking in moderation ‘requests’ from every corner of government: the FBI, DHS, HHS, DOD, the Global Engagement Center at State, even the CIA,” Taibbi testified to Congress in March 2023, shortly after his “Twitter Files” expose on the GEC.
The Washington Examiner later uncovered a $100,000 grant GEC made to the London-based Global Disinformation Index (GDI) in 2021 and 2022 — a media monitoring nonprofit that would go on to deem 10 outlets, including The Post, as purveyors of “disinformation.”
The GEC came under fire after journalist Matt Taibbi revealed the Biden administration had used it to pressure American social media platforms to censor “disinformation” during the COVID-19 pandemic.AP
While the agency’s stated goal was to “proactively address foreign adversaries’ attempts to undermine US interests using disinformation and propaganda,” Rubio said the State Department program was actually targeting Americans — something he wouldn’t stand for.
“Freedom of speech and expression have been a cornerstone of what it means to be an American citizen. For centuries, the United States served as a beacon of hope for millions of people around the world,” Rubio said. “Over the last decade though, individuals in America have been slandered, fired, charged, and even jailed for simply voicing their opinions.
“That ends today. Under the administration of President Trump, we will always work to protect the rights of the American people, and this is an important step in continuing to fulfill that commitment.”
Stocks tanked after Federal Reserve Chair Jerome Powell said President Trump’s surprisingly stiff tariffs could keep inflation higher for longer than previously expected — forcing the central bank to keep interest rates high.
The nation’s top central banker on Wednesday said Trump’s new wave of trade taxes are “significantly larger than anticipated,” adding that “the same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
“Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored,” he continued.
Fed Chair Jerome Powell warned that President Trump’s tariffs could put central bankers in a “challenging scenario.”AFP via Getty Images
“You would worry that that process will take some years and that the inflationary process might be extended.”
Investors ran for the exits after Powell spoke, with the Dow Jones Industrial Average tumbling as much as 949 points, before shaving the losses before the closing bell to finish down 699.57, or 1.7%. The S&P 500 and Nasdaq dropped 2.2% and 3.1%, respectively.
“I think people were expecting Powell to be neutral and he was hawkish instead,” Jim Carroll, senior wealth advisor at Ballast Rock Private Wealth in Charleston, SC, said about the additional losses in stocks in response to Powell’s appearance.
Powell added that the tariffs threaten to pose a “challenging scenario” that could force central bankers to choose between tamping down inflation and propping up the labor market.
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell said in prepared remarks at the Economic Club of Chicago, his second public speech since Trump unveiled the tariffs on April 2.
The president’s hefty trade taxes – a staggering 145% rate on Chinese goods, and a temporary 10% tax on most other nations while final rates are negotiated – could make it trickier to realize the Fed’s 2% inflation goal while keeping the labor market strong, according to Powell.
Jerome Powell said the tariff increases thus far are “significantly larger than anticipated.”REUTERS
In March, the Fed projected two interest rate cuts in the second half of this year. That prediction came before the president unveiled his so-called “reciprocal” tariffs, which included harsher-than-expected rates on many nations.
Powell reiterated that the central bank does not need to rush to change policy as of yet – especially as the back-and-forth nature of tariff negotiations keeps the US economy in flux.
“As that great Chicagoan Ferris Bueller once noted, ‘Life moves pretty fast,’” Powell explained. “For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
President Trump has lowered tariffs on most nations to 10% for 90 days as the White House negotiates rates.REUTERS
Powell also warned of potentially slower economic growth.
“The data in hand so far suggest that growth has slowed in the first quarter from last year’s solid pace,” Powell said. “Despite strong motor vehicle sales, overall consumer spending appears to have grown modestly. In addition, strong imports during the first quarter, reflecting attempts by businesses to get ahead of potential tariffs, are expected to weigh on GDP growth.”
Gross domestic product growth for the first quarter will be reported later this month.
Retail sales data released by the Commerce Department earlier on Wednesday depicted strong growth. Sales increased 1.4% above expectations.
But analysts warned the tick-up in sales largely came from shoppers rushing to get ahead of tariff-induced price increases – like buyers who flocked to car dealerships to beat the auto tariffs – and likely won’t repeat.
