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Tesla Suspends China Shipments for Cybercab and Semi-Electric trucks Amid U.S.-China Trade War

Tesla has paused plans to ship components from China for its upcoming Cybercab and Semi electric trucks destined for U.S. production, following a sharp hike in tariffs by President Donald Trump, according to a source familiar with the matter.

The suspension, triggered by soaring import duties, could delay Tesla’s plans to begin mass production of the highly anticipated vehicles. Both models have been spotlighted by CEO Elon Musk as critical to the company’s future growth and innovation roadmap.

Initially, Tesla was prepared to absorb the financial hit from the 34% tariff imposed on Chinese imports. However, when the total tariffs soared to 145%, the company had no choice but to halt shipping plans, said the source, who requested anonymity due to the sensitive nature of the matter.

The Cybercab, Tesla’s autonomous robotaxi, is slated for production in Texas, while the Semi truck is expected to be manufactured in Nevada. Tesla had aimed to begin trial production by October 2025, with full-scale production rolling out in 2026.

The duration of the suspension remains uncertain.

On April 9, Trump raised tariffs to 84%, before escalating them further to 125%, in a move that has now brought total levies on Chinese goods exported to the U.S. to 145%. While these tariffs were intended to encourage domestic manufacturing, they have inadvertently disrupted operations at home, including for automakers like Tesla.

Trump also hinted at modifying existing 25% tariffs on auto imports from countries including Mexico and Canada, acknowledging that car companies “need a little bit of time because they’re going to make [them] here.”

Meanwhile, Tesla has been pursuing regulatory approvals to launch a robotaxi fleet built around its Cybercab concept, which was unveiled in October. The model, designed without a steering wheel or pedals, is projected to cost under $30,000 and enter production in 2026.

The company also plans to ramp up Semi truck production that same year and begin delivering long-delayed orders to customers such as PepsiCo.

The trade war fallout has also affected Tesla’s operations abroad. In response to U.S. tariffs, China imposed a 125% retaliatory duty on American goods, prompting Tesla to pause new orders for its Model S and Model X in the Chinese market.

Despite his alignment with Trump on several fronts, Musk has been an outspoken critic of tariffs. On his social platform X, he has consistently advocated for free trade, even sharing a video illustrating the global complexity behind manufacturing something as simple as a pencil. According to The Washington Post, Musk recently made a personal appeal to Trump, urging a rollback of sweeping international tariffs.

According to a February report by S&P, the U.S. has accounted for 15% to 20% of China’s auto parts exports by value in recent years — a figure now threatened by rising geopolitical tensions and economic protectionism.

Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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