Posted on 14 May 2024
The Biden Administration is expected to hike tariffs on Chinese EVs and other imported products to improve domestic industries’ competitiveness.
After three years of review, the US government is reportedly considering to quadruple tariffs on Chinese EVs to 102.5% from 27.5%. Duties to other industries will double or triple although the scope is unclear, according to Bloomberg. These could be batteries, solar cells, steel and aluminium.
Unnamed sources suggest there will be no duty reductions, although some items will be excluded, such as machinery used in solar panels manufacturing.
The anticipated announcement comes as the 2024 US presidential race intensifies. The review was first introduced by Donald Trump in 2018. However, Trump is now calling for more widespread measures that Biden views as excessive.
Trump says Chinese companies can avoid the curbs by setting up manufacturing in Mexico and shipping them to the US under the US-Mexico-Canada Agreement. If elected, he says he would slap 200% tariffs on cars made by Chinese companies in Mexico. Such measure would prevent Chinese brands from avoiding tariffs via third party countries, like it is done in the solar panels market.
The EV tariffs expected to be hiked this week will affect products that are already fairly absent in the US market due to existing duties, with some calling the move “symbolic.”
The weekend reports did not dampen the enthusiasm for the New York debut of Chinese luxury EV maker Zeekr. Its shares rose nearly 40% after floating on Friday.
The United States Trade Representative (USTR) was contacted for comment.
The government agency said earlier this year that five national labour unions filed a petition requesting an investigation into China’s “acts, policies, and practices” in the maritime, logistics, and shipbuilding sector.
“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.”
Source:Kallanish
