Tuesday, June 25, 2024

Biden announces a 100% tariff on Chinese EVs

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Joe Biden has hiked tariffs on Chinese electric cars as he looks to protect the US auto industry from a wave of cheap vehicles.

The White House announced early on Tuesday that it was imposing tariffs on $18 billion of Chinese goods, including a 100% tax on Chinese-made electric vehicles.

The new tariffs also target lithium batteries, solar cells, and semiconductors and are likely to inflame tensions between the two economic superpowers further.

The rise in tariffs on Chinese EVs — from 25% to 100% — will probably be a relief for the US auto industry, which has become increasingly nervous about the prospect of competing with Chinese companies selling EVs for much cheaper.

The 25% tariff has largely made it too expensive for Chinese automakers to set up shop in the US.

But Tesla rivals such as BYD, which sells cars for as little as $11,000 in China, have been stepping up their plans to export to other countries as competition becomes increasingly brutal back home.

Reports that BYD and its fellow Chinese automakers MG and Chery were planning to build factories in Mexico sparked concern from US lawmakers, with several warning that the move could give them a “backdoor” to the US market.

The latest round of tariffs, which also target steel, aluminum, and medical products such as face masks and respirators, don’t go as far as those proposed by Donald Trump, who has said he’ll introduce a 60% tax on all Chinese imports if elected president in November.

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