Elon Musk listens to US President Donald Trump
Credit: Reuters File Photo
US President-elect Donald Trump has said he will impose a 25 per cent tariff on all products coming from Canada and Mexico, and 10 per cent on Chinese goods to check the flow of illegal immigrants and drugs into the United States.
Trump's 'first buddy' Elon Musk's space technology company SpaceX is hoping to be exempt from tariffs on equipment imported from China.
As per a report by the Telegraph SpaceX has requested the US government to waive the import tariff on two pieces of Chinese manufacturing equipment. The equipment is required to produce broadband terminals for Starlink, SpaceX's satellite internet business.
The company in its filing with the US Trade Representative (USTR) stated that they were unable to source the equipment which aids American manufacturing, in the US.
While SpaceX was more receptive to the tariffs, Musk's, electric vehicle maker Tesla earlier this month warned that the new tariffs would increase the cost of manufacturing in the US. SpaceX stated that the company was subject to unfair costs imposed by other countries.
The two pieces of equipment that SpaceX is requesting be exempt from tariffs are an industrial soldering system and a circuit board printing machine. The former is made by an American company that manufactures in China, Illinois Tool Works (ITW), and the latter is made in China by the Japanese company Fuji.
ITW is going to be producing soldering systems by 2026, SpaceX told USTR, however in the interim as there is no alternative the company is required to import the equipment.
“Once production is moved to the US, SpaceX will procure domestically to support US production,” its application said, the report stated.
While the Fuji system is available at a higher cost from a non-US source.
The company is asking for an exemption from the 25 per cent tariff that was introduced during Trump's first administration when he imposed duties on Chinese imports. While the Biden administration left the tariffs in place they allowed US manufacturers to apply for exemptions.
It can take up to 30 days to be approved and will be in effect till the end of May.