Publicly available market data from automotive industry analysis

Biden Administration Quadruples Tariffs on Chinese EVs to 100%, Drawing Smoot-Hawley Comparisons

May 20, 2024, 07:44 AM

The Biden administration has announced a significant increase in tariffs on Chinese-made electric vehicles (EVs) and batteries, raising them to 100 percent. This move, which quadruples the previous tariffs, is aimed at protecting American EV manufacturers but has drawn criticism from various quarters. Critics, including The Economist, have labeled the tariffs as 'farcical' and 'bad policy,' arguing that they may harm U.S. competitiveness and are at odds with climate goals. Experts have also compared the tariffs to the 1930 Smoot-Hawley Tariff Act, which weakened the global economy. The new tariffs could impact major American EV manufacturers like Tesla and Ford, potentially making affordable EVs less accessible in the U.S. market.