Who is afraid of China’s electric cars? President Joe Biden.
The president is preparing to announce increased tariffs on imported Chinese-made EVs, potentially allowing the country to afford to import much cheaper and often more desirable plug-in vehicles into the United States. The top will be closed.
according to wall street journal, The Biden administration is expected to roughly quadruple the tariffs from the current 25% to 100% and announce plans to impose an additional 2.5% tariff.
Who is afraid of China’s electric cars?joe biden
So far, current tariffs have been effective in deterring Chinese companies from importing EVs into the United States. But officials are reportedly nervous about whether the Chinese government intends to subsidize the car manufacturing sector. Although China is the world’s largest exporter of automobiles, virtually no automobiles are exported to the United States.
China’s auto industry is the world’s largest, and about 30% of the country’s car sales are electric vehicles. Most of the world’s EV batteries are manufactured in China, and many of the country’s most popular models are praised for their design, functionality, and price.
But U.S. automakers have long worried that the influx of Chinese EVs could effectively force them out of business. Earlier this year, Tesla CEO Elon Musk, who sells most of his cars in China, warned that Chinese manufacturers would “destroy” domestic rivals without trade barriers. The worry is that Chinese EVs are so cheap (BYD’s Seagull sells for about $10,000) that domestic automakers won’t be able to compete. Other politicians are calling for a complete ban on Chinese-made EVs.
Concerns about Chinese-made EVs have guided much of the Biden administration’s consumer and manufacturing policies over the past three years. For example, the $7,500 EV tax credit is structured to encourage automakers to source batteries within the United States or from its trading partners. Vehicles, batteries and other parts from “foreign companies of concern” including China will not be eligible for the credit. And earlier this year, the government launched an investigation into the potential safety risks posed by smart car technology produced in China.
Despite these policies, Republicans led by former President Donald Trump have criticized Biden’s EV policies, saying they are setting the stage for takeovers by Chinese companies. Indeed, Mr. Biden has maintained many of the trade restrictions on China imposed by Mr. Trump and introduced some new restrictions of his own.
The new tariffs are also expected to apply to other clean energy products such as solar panels and critical minerals. journal I will report. The announcement comes amid reports that China is preparing to flood the global market with cheaper products as its domestic economy slumps.
Of course, the lack of affordable electric vehicles in the U.S. is contributing to the slowdown in sales. And that could jeopardize Biden’s efforts to reduce carbon emissions from transportation.
