U.S. Government Contemplates Increase Tariff on Chinese Goods Including Electric Vehicles

The U.S. government is considering raising tariffs on certain Chinese goods, including electric cars, according to The Wall Street Journal. Chinese electric cars entering the U.S. are already subject to a 25% tariff, and it was clarified that a tariff increase would have little immediate impact on U.S. consumers.

The Biden administration has maintained tariffs on approximately $300 billion worth of Chinese goods from the Trump era, but the White House and other officials are revisiting tariffs for a long-term review to be completed early next year, The Wall Street Journal reported.

In response, a Chinese Foreign Ministry spokesperson said at a regular press conference that this is an upgraded version of U.S. protectionism, which China firmly opposes. He added that China urges the U.S. to abide by WTO rules, maintain a fair trade order, and provide a fair, equitable, and non-discriminatory business environment for companies from all countries. China will closely follow the situation and take measures to protect its legitimate rights and interests if necessary.

Chinese car companies are moving to Europe, Southeast Asia, and South America instead of entering the U.S. due to the U.S. government’s IRA. They are also pushing for the construction of production bases in Mexico for North America. For example, BYD is not yet sold in the U.S.

Nio announced at a conference held in New York in early November that it plans to sell its first car in the U.S. by 2025 as part of its goal to expand to 25 countries and regions. In an interview with the Financial Times in July, it urged the U.S. government to allow Chinese electric cars equal access to the U.S. market, arguing that automakers should not get caught up in the political tensions between superpowers.

By. Global Auto News