BEIJING, China: Tesla has halted new orders in China for its two U.S.-made premium models as trade tensions between Washington and Beijing escalate.

Checks this week showed that Tesla's Chinese website and its WeChat mini programme no longer offer the Model S and Model X for purchase. Both vehicles are manufactured in the United States and imported into China.

The company did not provide an explanation for the suspension. However, the move comes amid a sharp escalation in the ongoing trade dispute between the world's two largest economies. China raised tariffs on U.S. imports to 125 percent this week, in response to President Donald Trump's decision to increase duties on Chinese goods to 145 percent.

Higher import tariffs make U.S.-made electric vehicles significantly more expensive for Chinese buyers, reducing their competitiveness compared to domestically produced models.

Tesla is less exposed to Trump's tariffs than some other automakers, as most of its U.S. sales are covered by domestic manufacturing. The company also builds its best-selling Model 3 and Model Y at its Shanghai Gigafactory, which supplies both the Chinese market and other regions such as Europe.

According to Li Yanwei, an analyst with the China Auto Dealers Association, China imported 1,553 Model X vehicles and 311 Model S units in 2024. Combined, those two models made up less than 0.5 of Tesla's total deliveries in the country last year, when it shipped over 657,000 vehicles.

Growing competition from Chinese electric vehicle makers, particularly BYD, has also impacted Tesla's market share in China. Locally produced EVs often come with lower price tags and additional government incentives.

Globally, Tesla deliveries in the category that includes the Model S, Model X, and Cybertruck dropped 25% in the first quarter. The decline was attributed in part to aging vehicle designs and public backlash against CEO Elon Musk's political activity.