According to Bloomberg, the Biden administration is reportedly preparing to announce a significant increase in tariffs on Chinese electric vehicles (EVs), raising the current 25% tariff to 100%. This move is part of a broader strategy focused on strategic sectors including environmentally friendly energy products such as solar panels and batteries, as well as medical goods.
The decision to raise tariffs on Chinese electric vehicles is seen as a measure to protect the domestic industry from foreign competition, particularly from China, which has rapidly expanded its manufacturing capacities in the electric vehicle sector. In recent years, Chinese electric vehicles have become increasingly affordable and technologically advanced, posing a competitive threat to US automakers, as explained by The Guardian.
Tariffs are also part of a broader review of the “Section 301 tariffs,” which were originally imposed under the Trump administration. This review is still ongoing and aims to adjust US trade policies to better reflect current economic and strategic priorities.
So far, tariffs have been much lower
It is expected that the increase in tariffs to 100% will significantly impact the price affordability and availability of Chinese electric vehicles in the American market. Currently, all vehicles manufactured in China and imported into the US are subject to a tariff of 27.5%, which includes a 25% tariff specifically for cars manufactured in China and an additional 2.5% tariff applicable to all foreign-made vehicles.
The proposed tariffs have sparked discussions and concerns regarding possible retaliatory measures from China and broader implications for global trade and economic relations. The announcement is expected to be officially published on Tuesday.
