Biden Set To Increase Chinese EV Tariffs To Over 100%

The Biden administration is expected to impose tariffs on Chinese electric vehicles and other imported products to make domestic industries more competitive. After a three-year review, the U.S. government is considering increasing tariffs on Chinese electric vehicles from 27.5% to 102.5%. According to Bloomberg, tariffs on other industries will be doubled or tripled, but the exact scope is unclear. These industries may include batteries, solar cells, steel and aluminum.

The announcement comes as the 2024 US presidential race intensifies. The review was first proposed by Trump in 2018. However, Trump is now calling for broader measures that Biden says go too far.

Trump said Chinese companies could circumvent the restrictions by building factories in Mexico and shipping products to the United States under the United States-Mexico-Canada Agreement. If elected, he said he would impose a 200% tariff on cars produced by Chinese companies in Mexico. This measure will prevent Chinese brands from circumventing tariffs through third-party countries, as is done in the solar panel market.

“We have seen the PRC [People’s Republic of China] create dependencies and vulnerabilities in multiple sectors, like steel, aluminium, solar, batteries, and critical minerals, harming American workers and businesses and creating real risks for our supply chains,” comments USTR Katherine Tai. “I look forward to reviewing this petition in detail.”