The Biden administration is set to announce a huge increase in the pricing of Chinese EVs (electronic vehicles), raising the current 20% tariff to 100%. This price hike came days after the U.S. banned TikTok and in reply to the ban, TikTok sued the U.S. government.
Price hike decides to protect local US-made EVs from foreign competition, especially from China, after the EVs from China have become incredibly affordable and much more advanced than U.S.-made EVs.
Chinese EVs are an active threat to the U.S. EV market.
The “Section 301 tariffs” was initially implemented under the Trump administration. The review took different turns to make changes to the U.S. trade policies for better strategic priorities.
The increase of a 100% tariff will significantly increase the availability as well as the affordability of Chinese EVs in the U.S. market.
As of now, all Chinese-made EVs are subject to a 27.5% tariff when imported into the U.S. This includes a 25% tariff specifically for Chinese-made cars and an additional 2.5% tariff that applies to all foreign-made cars.
The proposed tariffs have sparked discussions and concerns about potential retaliatory measures from China and the broader implications for global trade and economic relations.
