President Trump’s escalating trade war with China is putting Elon Musk and Tesla in a tight spot as the electric vehicle manufacturer faces climbing tariffs in one of its most important markets.  Tesla suspended new orders of two models on its Chinese website on Friday as Beijing raised tariffs on American goods to 125 percent in the nation’s ongoing trade fight with the U.S.  While Tesla did not provide a reason for suspending the orders, the move may signal Musk – one of Trump’s fiercest allies – and his company are bracing for the effects of the president’s trade war.   “The fact that they’re still selling the cars, but not importing them points to one obvious conclusion: The tariff impacts are having an effect on Tesla’s international sales,” said Maxwell Shulman, research analyst with Beacon Policy Advisors.   The intensifying trade war puts the business interests of Tesla and Musk, who gave millions to reelect Trump and campaigned for him in key swing states, at a crossroads with the president, who is not letting up on the tit-for-tat with China.   “It’s not even like the politics helped him [Musk] fend off these tariffs that hurt his company,” said Sarah Kreps, director of Cornell University's Tech Policy Institute.   “It’s almost like it’s the worst of all worlds that he put his neck out there, lost support from the domestic consumers of Tesla and now, because [the] tariffs are having this dismal effect in his other big market, which is China.”   Tesla is now among the various companies forced to make quick changes to their foreign manufacturing process, whether that be through scaled back production or delayed shipments, in the wake of the fluctuating trade war.   The two paused Tesla models – Model S and X – are those that are almost entirely assembled in the U.S. at Tesla’s Fremont, Calif. factory.  The two models that remain active on the Chinese website – Model 3 and Model Y – are made at Tesla’s Shanghai Gigafactory and more insulated from the tariff pressure as a result.  The website changes happened abruptly overnight Thursday, just one day after Trump shifted the attention of his trade war on China. As of Friday, the U.S. tariffs on Chinese goods sit at a 145 percent.   "Even with time, this kind of tariff policy would be extremely disruptive and costly” said Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics.  “But without time to adjust, you just have to effectively either increase prices with these tariff levels...you just can't increase prices enough to compensate for the tariff, and you definitely can’t just eat the tariff because it’s so large for most goods,” Chorzempa added.  Tesla did not immediately respond to The Hill’s request for comment on the changes.  The company produces nearly all of its North American cars in the U.S. and observers predicted the company could avoid the brunt of Trump’s tariffs due to its focus on domestic production.   Still, Musk and the company repeatedly warned in recent weeks it would not go unscathed should reciprocal tariffs take effect in other countries.  Experts said the pause on some models is to be expected given the uncertainty and that consolidation of certain models is a way to protect   Despite backing the president on most policies in recent months, signs emerged this month that the tariffs were a source of concern for Musk, who is separately leading Trump’s so-called Department of Government Efficiency (DOGE)   The Tesla CEO publicly broke with the administration on its tariff policy this week, marking one of his few instances of public disagreement with the White House since January.   Musk voiced his support for free trade between Europe and the United States last weekend and reportedly made personal appeals to Trump to reverse the tariffs he originally imposed on nearly all of the U.S.’s trading partners.   The president eventually paused his new tariffs for all nations besides China, though it is not clear whether Musk’s input played a role in his decision.   While Musk has made clear his thoughts on tariffs, industry observers say it may not be enough to prevent Tesla from being caught in the global crossfire given the tech billionaire's role within the administration.   "If China wanted specifically to damage the Trump administration or some of its boosters as part of the current trade spat, it would make sense for the country to specifically go after Tesla as opposed to a generic foreign car manufacturer like GM,” Shulman told The Hill.   China’s Ministry of Finance on Friday said the 125 percent import tax is final and that the nation will seek other countermeasures if the U.S. continues to “infringe on China’s interests substantively.”   Tesla has separately become a political lightning rod in recent months as protestors take out their frustrations over DOGE on the electric vehicle company.   Most demonstrations at Tesla showrooms or charging stations have been peaceful, though some incidents have involved violence, shootings and setting cars on fire. Some, including many protestors in Europe, are boycotting the company to push back against Musk’s leadership and Tesla’s global market share has seen a dip as a result.   Shulman suggested a similar pattern could unfold in China, but with frustrations centered on the tariffs.   “Local consumers there might want to preference supporting their own car brands, as opposed to this foreign car brand that’s associated with a geopolitical adversary,” he said.  This could unfold for any American company operating in China, some experts said.   “We could see consumer boycotts...We’re certainly likely to see if there’s any negative economic news that will now squarely be blamed on the United States, not on China’s own domestic economic policy mistakes,” Chorzempa said.    While China is one of Tesla’s largest markets, experts noted the number of Chinese imports is not a large chunk of company’s volume of products.   According to data obtained by Reuters from the China Auto Dealers Association, China imported 1,553 Model X cars and 311 Model S cars last year, while 90 percent of the vehicles Tesla delivers in China are Model 3 and Model Y, electrek reported.   ...read more read less