Tesla is among the many a whole bunch of auto trade gamers asking the U.S. Commerce Consultant for prolonged tariff waivers on components and supplies imported from China used to make or restore vehicles.

Provide chain points are contributing to hovering costs for brand new and used autos within the U.S. Tariffs levied throughout the Trump administration’s commerce battle with China are contributing to these worth will increase — particularly since non permanent exclusions to a few of these tariffs have been allowed to run out in late 2020 or early this yr.

In October, the USTR mentioned that it might think about reinstating tariff exclusions on a case-by-case foundation, notably for imports that may solely be obtained from China. The outpouring of trade pleas might spur the Biden administration to reinstate authorities exclusions on 25% tariffs on synthetic graphite imported from China, in addition to different supplies and parts.

Tesla filed three public feedback on Wednesday supporting waivers for tariffs on graphite, which is used to make the anode element of lithium-ion batteries in its vehicles. It mentioned solely mainland China might present the amount of graphite it wants in flake or powder type to fabricate its batteries within the U.S.

“Because of Tesla’s due diligence course of for suppliers of synthetic graphite, globally and in the US, Tesla has concluded that no firm in the US is at the moment able to producing synthetic graphite to the required specs and capability wanted for Tesla’s manufacturing,” Tesla wrote.

Battery big SK Innovation, by way of its SK Battery America subsidiary, additionally supported an prolonged waiver for tariffs on graphite.

“A renewed exclusion will enable SK to fabricate high quality breakthrough electrical automobile parts at aggressive costs for American OEMs, whereas creating full-time jobs that help American households. For instance, exclusions will profit an $11.4B three way partnership with Ford and a $2.54B funding in Georgia,” the corporate wrote.

Useful resource World reported that the typical hybrid electrical automobile makes use of round 22 kilos (or 10 kilograms) of graphite, and the typical absolutely electrical automobile makes use of round 220 kilos (100 kilograms) of graphite.

Graphite is much from the one element at play. Toyota, Magna and AutoZone are amongst different trade gamers searching for waivers to get out of paying tariffs on objects together with electrical motors utilized in automotive seats, printed circuit boards utilized in cameras that allow driver help options, axles utilized in a whole bunch of fashions of vehicles bought within the U.S., and uncooked supplies.

Tesla CEO Elon Musk has been discussing the stresses brought on by provide chain points all yr.

In June, he wrote in a tweet, “Our largest problem is provide chain, particularly microcontroller chips. By no means seen something prefer it. Worry of operating out is inflicting each firm to overorder.” Earlier this week, he mentioned on Twitter, “Oh man, this yr has been such a provide chain nightmare & it isn’t over!”

Musk beforehand engaged former President Trump on commerce points together with import tariffs on Twitter in 2018. In that trade, Musk mentioned he was in opposition to import duties usually, however urged that if there can be any in anyway they need to be equal to duties the Chinese language authorities applies to American imports there.

Wednesday was the deadline for events to file their feedback with USTR. Tesla’s three feedback have been amongst 2024 entries filed since October, in response to the USTR web site.