From CNBC: 2024-05-15 15:46:13

President Joe Biden announces a 100% tariff increase on Chinese-made electric vehicles to promote American investments and jobs. However, experts believe this move may only delay, not stop, Chinese automakers from entering the U.S. market with EVs. Chinese companies have increased their quality and are poised to compete globally.

Chinese automakers have rapidly improved their vehicle quality with Beijing’s support, leading to a decline in market share for global automakers like GM. The Big Three U.S. automakers have seen their market share drop significantly. Budget-friendly Chinese EVs pose tough competition. Despite the tariffs, Chinese EVs could still offer competitive pricing in the U.S. market.

The Biden administration’s focus on Chinese EVs aligns with its clean energy goals, emphasizing electric vehicle production and charging infrastructure. The exclusion of gas-powered vehicles in the tariff increase hints at the administration’s commitment to clean technology supply chains. Experts warn of the potential ripple effect on other countries if successful in curbing Chinese exports.



Read more at CNBC: Biden’s tariffs on Chinese EVs may not deter growing threat