How Elon Musk's relationship with China could shield Tesla from a Trump trade war

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How Elon Musk's relationship with China could shield Tesla from a Trump trade war
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As Donald Trump prepares to return to the White House, Elon Musk and Tesla look likely to benefit from influential ties to both the US president and the Chinese government.

As Donald Trump prepares to return to the White House next month, businesses worldwide are bracing for a worsening US- China trade war.

China is Tesla's biggest market outside the US, with sales comparable to those in America, and the car maker has enjoyed favourable treatment in the country not afforded to other foreign businesses. In May, the Biden administration imposed a 100 per cent tariff — a tax paid by importers — on Chinese EVs, and the EU followed with tariffs up to 45 per cent.

Trump has also promised to eliminate a $US7,500 EV tax credit — an idea for which Mr Musk has expressed support.

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