Consumer price indices or specific automotive pricing data

Biden Announces 100% Tariffs on $18 Billion in Chinese EVs and Imports

May 15, 2024, 01:43 PM

President Joe Biden has announced sweeping new tariffs on $18 billion worth of Chinese imports, targeting strategic sectors such as electric vehicles (EVs), semiconductors, batteries, steel, aluminum, and solar cells. The tariffs on Chinese EVs will rise to 100%, while those on lithium-ion batteries will increase from 7.5% to 25% by 2026, and the tax rate on imported Chinese EVs is set to rise to 102.5% this year. This move, directed by U.S. Trade Representative Katherine Tai under Section 301 of the Trade Act, aims to protect American workers and businesses from what the administration describes as unfair trade practices by China. However, some experts and automakers, including Mercedes, BMW, and VW, are skeptical about the effectiveness of these tariffs in aiding U.S. automakers. The Biden administration is also monitoring for attempts by Chinese companies to circumvent these tariffs by exporting from Mexico. The new tariffs have sparked concerns about potential retaliation from China and the broader implications for U.S.-China trade relations.