Market analysis reports and consumer price indices specific to the automotive sector

Biden's Administration to Hike Tariffs on Chinese EVs from 27.5% to 100%

May 12, 2024, 07:33 AM

The United States, under President Biden's administration, is set to significantly increase tariffs on Chinese electric vehicles (EVs), raising the current effective rate from 27.5% to 100%. This move, likely driven by domestic political pressures ahead of an upcoming election, aims to respond to the surge in Chinese exports, which also include critical minerals, solar goods, and batteries. Historically, similar trade measures have led to higher prices for consumers, as seen in the 1980s when auto quotas on Japanese cars raised the cost of vehicles in the U.S. by approximately $16.5 billion annually. The decision has sparked speculation about whether Europe will follow the U.S. in implementing similar tariffs. Currently, the U.S. imports relatively few Chinese EVs due to existing tariffs.