Biden Administration has announced new tariffs on Chinese electric vehicle (EV) imports, among other products. The tariffs, released on May 14, 2024, are part of a broader effort to curb China’s influence in the global market and prevent unfair competition.
The new tariffs are estimated to affect $18 billion worth of products from China, including steel, aluminum, computer chips, and solar cells. Importantly, Chinese EV import tariffs will see a significant increase of over 102%, the highest among the targeted China-made products.
President Biden emphasized the need to prevent China from flooding the American market and undermining the competitiveness of American auto manufacturers. “Weāre not going to let China flood our market making it impossible for American autoāauto manufacturers to compete fairly. I will do it by following international trade laws,” Biden stated.
In light of these tariffs, the White House is considering additional penalties for Chinese EV makers that shift production to Mexico to circumvent the new import taxes. U.S. Trade Representative Katherine Tai explained that such penalties would require a different approach, as Chinese EVs produced in Mexico present a unique challenge.
Tai expressed concerns that China might utilize Mexico as a means to avoid tariffs on its imports. China’s leading automaker, BYD, has already shown interest in Mexico, introducing the BYD Shark hybrid pickup truck to the Mexican auto market. Reports earlier this year indicated that BYD is considering expanding its global presence by establishing an electric vehicle plant in Mexico, with Nuevo LeĆ³n being a potential site. This move aligns with Tesla’s plans to build Giga Mexico in the same region.
