The US government has announced a significant increase in tariffs on several Chinese products, including electric vehicles (EVs) and lithium-ion batteries, in a move that could further strain trade relations between the two countries.
Starting in 2024, tariffs on Chinese EVs will quadruple from 25 percent to 100 percent, according to a statement from the Office of the US Trade Representative. The levy on lithium-ion batteries will also rise sharply, from 7.5 percent to 25 percent. Additionally, tariffs will increase on other products such as solar cells, steel, and aluminum.
US Trade Representative Katherine Tai stated that these measures are intended to address China’s unfair trade practices and policies.
In response, a Chinese Ministry of Commerce spokesperson criticized the US for using the tariff review process for political reasons, stating that the move was an attempt to politicize economic and trade issues. The spokesperson called on the US to correct its actions and cancel the tariff measures, warning that China would take resolute measures to defend its rights and interests.
The US decision to raise tariffs on Chinese products, including EVs, has been met with opposition from China’s Foreign Ministry. Spokesperson Wang Wenbin expressed concern over the impact on global climate action and urged the US to create conditions for cooperation on climate change.
Despite the tariff increase, Chinese EV makers may not be significantly affected, as the previous 25 percent tariff and the Inflation Reduction Act (IRA) have already limited their access to the US market. From 2023 to March 2024, the US imported significantly more battery electric vehicles (BEVs) from Germany and South Korea than from China.
The move to increase tariffs on Chinese products comes amid ongoing trade tensions between the US and China, with both sides taking measures to protect their respective interests.
