President Biden Slams Chinese Electric Vehicles With 102.5% Tariff
And that’s probably that.
The White House announced on Tuesday that it is increasing the extra tariff levied on electric cars made in China to 100%, effectively ending any possibility that new brands from the country will attempt to enter the U.S. market with low-cost EVs anytime soon.
All Chinese-made cars are currently subject to a 25% tariff on top of the 2.5% tariff that applies to most goods from the country.
A statement from the White House cited unfair trade practices, including government subsidies that back the Chinese electric car industry.
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The Chinese electric car industry has been booming over the past few years and their quality has been highly regarded by critics and owners from around the world.
The Polestar 2 sold in the U.S. today is made in China, but the upcoming Polestar 3 will be manufactured in South Carolina for U.S. sale, which will avoid the tariff and should qualify it for U.S. federal tax credits on EV purchases.
A “duty drawback” program exist to help offset tariffs with exports of American-made goods to China.
“This action advances President Biden’s vision of ensuring the future of the auto industry will be made in America by American workers,” the White House statement said.
“As part of the President’s Investing in America agenda, the Administration is incentivizing the development of a robust EV market through business tax credits for manufacturing of batteries and production of critical minerals, consumer tax credits for EV adoption, smart standards, federal investments in EV charging infrastructure, and grants to supply EV and battery manufacturing. The increase in the tariff rate on electric vehicles will protect these investments and jobs from unfairly priced Chinese imports.”
The move does not affect the 25% tariff on internal combustion engine models. The Buick Envision and Lincoln Nautilus — neither an EV — are both imported from China.
Biden also announced increased tariffs on several other Chinese-made goods, including semiconductors and solar panels.
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