Tesla plans on localizing production in China, to beat trade war related worries, including import duties, for its vehicles.

In a strategic development aimed at reducing the prices of Tesla’s vehicles, the luxury carmaker stated, it plans on producing nearly 3,000 Model 3s per week from its Shanghai plant during the initial phase of its Gigafactory 3.

The move is aimed at reducing the tariff profile of its cars.

In a filing Tesla said, Model S and the Model X sales in China, have been and is likely to continue to be, impacted by an increase in tariffs by the Chinese government on U.S.-manufactured vehicles.

It also stated, it continues to push the production of the Model 3 to around 10,000 units per week.