The White House approved the measures, which take effect within two weeks, four months after the Biden administration told the U.S. Trade Representative it plans to quadruple tariffs to 100% on certain Chinese imports, including electric vehicles, as the trade war escalates and China has warned of retaliation.
The saga of a looming trade war between some of the biggest markets on the planet continues as tariffs on Chinese-made EVs are about to go into effect in the U.S. The fray essentially began in the EU a few years ago, when Chinese EV automakers like BYD, NIO, XPeng, and ZEEKR began importing their models into the EU. This angered many of the established local automakers who currently offer inferior EV technology.
The threat of losing market share has dogged the European Union Commission, which launched an investigation into Chinese automakers in October and ultimately concluded that exports to the region had been “unfairly” subsidized. As a result, Europe has threatened to impose tariffs on Chinese-made car imports.
Meanwhile, the US wasted no time in making threats and immediately proposed to impose a 100% tariff on EVs imported from China, raising the tariffs fourfold. Today, the Biden administration has made good on its promise, with these steep tariffs on EVs and related technology going into effect in two weeks.
US to impose tariffs on Chinese products, including EVs, starting September 27
Today, the Office of the United States Trade Representative (USTR) confirmed that President Biden has finalized increased tariffs on Chinese imports, including EVs. According to the USTR, the tax increases include a 100% tariff on Chinese-made EVs, a 50% tariff on solar cells, and 25% tariffs on steel, aluminum, EV batteries, and other critical minerals.
The tariffs above will take effect on September 27, with more to come. The USTR decision announced on Friday also announced a 50% tariff on Chinese-made semiconductors, split into two new categories: polysilicon and silicon wafers used in solar panels. Both tariffs are set to take effect in 2025.
The USTR did not revise the 0% to 25% tariffs on lithium-ion batteries, minerals, and EV battery components that began this month, as mentioned above. The tariffs on these materials in other Chinese-made electronic devices, including laptops and mobile phones, will go into effect on January 1, 2026.
Aside from EVs, the USTR’s decision also includes new tariffs on other Chinese imports, including doubling tariffs on Chinese-made face masks, surgical gloves, and syringes.
White House top economic adviser Lael Brainard told Reuters the new tariffs were “tough and targeted” to counter Chinese state subsidies while also encouraging U.S. OEMs to move away from China’s monopoly on supply chains and bring more industry back to North America, Brainard said.
A 100% tariff on electric vehicles here reflects the grossly unfair cost advantage that electric vehicles, particularly from China, are using to dominate the auto market in other parts of the world at an astounding pace. Under the leadership of the Vice President and the President, that will not happen.
Like the EU, China has threatened to retaliate against U.S. tariffs on EVs and other imports, calling the increased tariffs “bullying.” Canada, a U.S. trading partner, recently announced it would follow the U.S. lead and impose 100% tariffs on Chinese-made EVs.
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