President Joe Biden has announced a plan to quadruple tariffs on China-made electric vehicles in an effort to promote American investments and jobs. The new 100% tariff, up from the current 25%, is aimed at protecting the domestic EV market from potentially cheaper Chinese models. However, experts believe that the increased tariffs may only delay, rather than prevent, Chinese automakers from entering the U.S. market with EVs.
Chinese auto companies have been steadily improving the quality of their vehicles in recent years, thanks to government subsidies. This has led to a decline in market share for global automakers like General Motors in both China and the U.S. Some Chinese EVs, such as the BYD Seagull, have already gained attention for their affordability and profitability.
Despite the new tariffs, the pricing of China-made vehicles could still be competitive with EVs currently on sale in the U.S. Analysts predict that protectionism measures may temporarily hinder Chinese EV expansion, but are unlikely to stop it in the long run.
The focus on China-made EVs aligns with President Biden's clean energy agenda, which emphasizes electric vehicle production and adoption. The exclusion of gas-powered vehicles from the higher tariffs reflects the administration's commitment to promoting sustainable mobility.
The Biden administration's decision to increase tariffs on Chinese EVs could have implications beyond the U.S., potentially affecting markets in Europe and prompting Chinese companies to establish local production operations or joint ventures to lower export costs.
Overall, the new tariffs on China-made EVs are seen as a short-term protectionist measure that may impact the global automotive industry, but are unlikely to completely deter Chinese automakers from entering the U.S. market in the future.