U.S. to Increase Tariffs on Chinese EVs from 27.5% to 100%

May 10, 2024, 08:10 PM

The United States is poised to significantly increase tariffs on Chinese electric vehicles (EVs), potentially doubling the current rate from approximately 27.5% to 100%. These tariffs were initially established in 2018/19. This move is part of a broader strategy to respond to the surge in Chinese exports, which may also affect other strategic goods such as critical minerals, solar products, and batteries. The decision comes amid domestic political pressures and an upcoming election, suggesting that the tariff hike could be influenced by political rather than practical considerations. Analysts, including Wedbush's Dan Ives, anticipate retaliatory measures from China in response to the new tariffs.