The US government is reportedly considering imposing new tariffs on Chinese industries, including electric vehicles (EVs), solar cells, and batteries. This move comes amid fears of cheap Chinese exports flooding the US market. President Joe Biden is expected to target China’s EV industry as part of these tariffs.
According to reports, specific details about the tariffs, such as their value or categories, are limited. However, the focus seems to be on strategic competitive and national security sectors. While higher taxes are expected, they won’t be as broad as those proposed by former President Donald Trump.
The decision on tariffs could be made as early as next week, but there is a possibility of a delay. This move is part of the US government’s efforts to protect the domestic EV industry from Chinese competition. Chinese EV producers have largely avoided the US market due to existing trade barriers, but this may change as competition in China intensifies.
Reports that Chinese automakers are considering building factories in Mexico have raised concerns among US officials and lawmakers. There are fears that this could provide Chinese car companies with a way to enter the US market through a “backdoor.” The expected tariffs on Chinese EV exports would be a relief to American EV companies, as they may help level the playing field.
Tesla CEO Elon Musk has warned that Chinese EV firms could outperform Western rivals without trade barriers. While the reported tariffs aren’t as extreme as what Trump proposed, they show a continued effort to protect US industries from foreign competition.
