US denies Tesla tariff relief request for Chinese-made Model 3 'brain'

The Trump administration has denied requests to exempt Tesla Inc's Model 3 from 25 percent tariffs on its Chinese-made car computer and center screen, according to letters seen by Reuters.

The US Trade Representative's Office denied both requests in May 29 letters, saying they both concern "a product strategically important or related to 'Made in China 2025' or other Chinese industrial programs."

The California-based electric vehicle manufacturer had warned that increased tariffs on the car computer it dubbed the "brains" of the Model 3 causes economic harm to Tesla, through the increase of costs and impact to profitability.  Tesla had also urged the office to approve a request by its supplier SAS Automotive USA Inc, builder of the center display screen for the Model 3.