Tesla has paused new orders for its Model S and Model X vehicles in China, following the US decision to impose 145% tariffs on Chinese imports. The move, seen on Tesla’s website and WeChat account, signals early fallout from US President Donald Trump’s escalating trade war, a policy shift that could hurt Elon Musk, a known Trump ally. Although the two luxury models made up less than 5% of Tesla’s sales last year, the timing highlights growing pressure on Musk’s operations in China. While Tesla’s sales there hit a record 657,000 in 2024, the company has recently lost ground to local rival BYD, which surpassed Tesla in global revenue last year. Musk has maintained strong ties with Beijing due to China’s dominance in battery and green tech supply chains. The CEO lashed out at Trump’s trade adviser, Peter Navarro, calling him “truly a moron,” after Navarro downplayed Musk’s role as a manufacturer. Tesla’s stock has dropped about 50% from its December peak, and Musk acknowledged the tariffs will have a “significant” impact. He has reportedly urged Trump to reverse course as markets slump, while also expressing hope for a US-EU trade deal. Tesla’s image has also taken a hit due to Musk’s political views, with some customers boycotting the brand and mocking it with bumper stickers. The company’s sales saw their sharpest drop in over a decade earlier this year. Meanwhile, the FBI is investigating attacks on Tesla vehicles and dealerships involving Molotov cocktails.