US Government Grants Tariff Waivers on Japanese Aluminum Imports to Tesla

The US Commerce Department will waive the 10% tariffs on Japanese aluminum imports as per Tesla's request for use in manufacturing its..

Arslan Butt•Tuesday, June 25, 2019•1 min read

The US Commerce Department will waive the 10% tariffs on Japanese aluminum imports as per Tesla’s request for use in manufacturing its battery cells. In April, Tesla had requested the exemption on 10,000 tons of Japanese aluminum produced annually by Nippon Light Metal Co Ltd.

The US government has granted a waiver on tariffs to Tesla for one year. The aluminum imported from Japan is used by the company to make battery cells for its Model 3 vehicle. According to Tesla’s request, US manufacturers are unable to meet the specific alloy composition and thickness requirements set by the company and it sees an exponential rise in demand for these batteries in the coming years.

Tesla had previously requested tariffs waivers from the USTR office for Chinese-manufactured parts for its cars, which were rejected. However, the government granted tariff exemption on aluminum imports from Japan without any objection.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.