Tesla sues Donald Trump administration over tariffs on Chinese imports

US-based electric car manufacturer Tesla has filed a lawsuit against US President Donald Trump’s administration with an aim to end what it calls “unlawful” tariffs imposed on certain parts imported from China, reported AFP.

The company in its lawsuit, which was filed on Monday in the New York-based Court of International Trade, said the 25% tariffs imposed by the US Trade Representative on a list of products, including spare parts like terminals, are “arbitrary, capricious, and an abuse of discretion.”

This comes amid a trade war between Washington and Beijing. Tesla is seeking a cancelation along with a “refund, with interest” of duties already paid.

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Washington imposed levies to wean its manufacturers off Chinese technology and reduce the yawning trade deficit with China.

The US and China engaged in months of trade conflict after Trump took office in 2017, and despite a “phase one” deal signed earlier this year marking a partial truce in the dispute, additional tariffs of 25 percent remain on the equivalent of $250 billion in Chinese goods.

Beijing has retaliated for these levies, while Washington is aiming both to reduce its trade deficit and reform Chinese commerce practices it considers “unfair.”