Tesla is halting sales in China of vehicles that must be imported. Gao Yuwen/VCG/Getty Tesla is facing the consequences of President Trump’s tariff strategy. While the company’s U.S. business is somewhat cushioned from import tariffs because it is more vertically integrated than other carmakers, Tesla’s business elsewhere faces retaliatory tariffs on imports of its cars. Bloomberg first reported that Tesla has stopped taking orders for its high-end Model S and Model X vehicles in China because the company imports those into the market. Tesla produces the more affordable Model 3 and Model Y vehicles in China at its Shanghai Gigafactory, meaning they are not impacted by China’s 125% tariffs implemented in the ongoing tit-for-tat trade war. Fortunately for Tesla, the Model S and Model X are some of its least-popular vehicles by a wide mile, so the loss of sales of those in China may not have a material impact. It is still offering S and X vehicles that are already in inventory in the country. Being so close to President Trump has been something of a double-edged sword for CEO Elon Musk. While he appears to be lining up lucrative contracts for his empire of businesses, Musk’s global reach makes him highly exposed to geopolitical feuds and an easy target in scuffles with adversaries. Musk has been surprisingly forthright in his disdain for Trump’s tariff strategy. After top trade adviser Peter Navarro claimed Musk dislikes tariffs because he imports many parts, Musk shot back, saying Tesla’s are the most American-built vehicles and calling Navarro “dumber than a sack of bricks” before sarcastically apologizing to bricks. Musk also began posting videos of economists outlining the benefits of free trade—such as the obvious fact that certain key materials like rare earth metals can not be sourced in the United States. But President Trump believes in a zero-sum fallacy that in any transaction with foreign countries, one person winning means the other loses. Tesla has the most American-made cars. Navarro is dumber than a sack of bricks. @IfindRetards @RealPNavarro https://t.co/gECgtZt5Sc