Report: Elon Musk Asks Trump for China Tariff Exemption After Move to Produce Teslas Overseas

Elon Musk’s Boring Company has reportedly asked President Trump for a tariff exclusion on “certain Chinese parts for tunneling machinery.” The request comes just a month after Musk announced that Tesla would be opening a car factory in China.

The Boring Company, which is working on a Hyperloop tunnel to connect New York City and Washington, D.C., reportedly claimed the tariffs would create delays and “economic harm to the company,” according to Bloomberg.

“Boring Co. asked the administration unsuccessfully in May to have components for tunneling machinery removed from the list of products targeted for tariffs,” reported Bloomberg. “Now it’s seeking an exclusion for parts such as cutterheads, the front portion of a boring machine that directly mines the soil.”

Musk’s company says that it wants to develop and manufacture its own tunneling machines, but until those are ready, it needs to use existing hardware. It claims the necessary parts can be purchased elsewhere, but are “readily available” in China, and are only needed for a “small number” of the company’s machines.

In July, Musk announced that his car company, Tesla, would be building a car factory in China. Beyond the questionable decision of building cars outside the U.S. while the country is in the midst of a manufacturing resurgence, Breitbart News economics editor John Carney says that Musk may be driving directly into a “China Trap.”

In February, the Boring Company was issued a commercial drilling permit for the Hyperloop between New York City and Washington, D.C., which would reportedly take passengers between the two cities within 29 minutes.

Just received verbal govt approval for The Boring Company to build an underground NY-Phil-Balt-DC Hyperloop. NY-DC in 29 mins.

— Elon Musk (@elonmusk) July 20, 2017

The Boring Company is also planning subterranean transport between downtown LA and LAX Airport, faster trips to LA Dodgers games, and downtown Chicago to O’Hare Airport.

In July, President Trump confirmed $34 billion of Chinese goods would face tariffs overnight, while just days later President Trump announced plans to place ten percent tariffs on another $200 billion.

During an interview with CNBC, President Trump also declared that he was “ready” to impose more tariffs on China which would “level the playing field.”

“We are being taken advantage of and I don’t like it,” President Trump proclaimed.