From Morningstar: 2024-05-15 05:13:00

On May 13, the US imposed new tariffs on Chinese imports, including a 100% tariff on electric vehicles, 25% tariff on lithium-ion batteries, and critical minerals like graphite and cobalt.

Despite the tariffs, US EV adoption remains on track to reach 40% by 2030, thanks to federal subsidies for EVs made with US or free-trade partner components.

The lack of subsidies may push automakers to source EV components outside of China, limiting lower-cost Chinese EVs in the US market.

US automakers like Tesla, General Motors, and Ford have an opportunity to capture consumer demand for affordable EVs in the absence of Chinese competition.

The exclusion of lithium in the tariffs is surprising, as China dominates global lithium refining. However, US-listed lithium producers have operations in both countries, mitigating the impact of potential tariffs and maintaining the outlook for higher lithium prices in 2024.



Read more at Morningstar: What Tariffs On Chinese EVs Mean for US Auto Stocks