The US imposes more than 100% tariffs on Chinese electric vehicles 3
The White House’s decision invokes section 301 of the Trade Act of 1974, which allows the government to retaliate against trade practices deemed unfair or in violation of global standards.
Specifically, the tax rate on electric vehicles imported from China will increase to 102.5% this year, from 27.5%.
Lael Brainard, President Joe Biden’s national economic adviser, said `made in China` electric vehicles should be subject to four times the current tariffs to offset `China’s unfair practices and subsidies.`
Electric vehicles displayed at a shopping center in Beijing on November 3, 2023.
Currently, no major Chinese manufacturers such as BYD, NIO and Li Auto officially sell electric vehicles in the US.
Polestar vehicles are mostly produced in China, but the company plans to assemble them at its South Carolina factory by the middle of this year.
`Previously, relatively few Chinese electric vehicles were imported, so increasing tariffs will not change the US market,` Owen Tedford, senior analyst at Beacon Policy Advisors, commented on Nikkei.
According to AP, officials fear that Chinese electric vehicles will soon flood the US market.
In February, BYD – a car company considered a competitor of Tesla, said it planned to establish a factory in Mexico to serve the local market.
A number of other Chinese products also had tariffs increased this time, including solar panels, steel, aluminum and medical equipment.
Chinese officials expressed disappointment with this move by the White House.
According to Mr. Liu, the US announced its readiness to strengthen cooperation with China on climate change, but still exaggerates the so-called `overcapacity` in the new energy sector and increases taxes on electric vehicles and other products.
