Biden to Quadruple Tariffs on Chinese EVs

[former9thward]

WASHINGTON—The Biden administration is preparing to raise tariffs on clean-energy goods from China in the coming days, with the levy on Chinese electric vehicles set to roughly quadruple from 25% to 100%, according to people familiar with the matter.

Higher tariffs, which Biden administration officials are preparing to announce on Tuesday, will also hit critical minerals, solar goods and batteries sourced from China, according to the people. The decision comes at the end of a yearslong review of tariffs imposed by former President Donald Trump on roughly $300 billion in goods from China.

Whether to adjust the Trump-era levies divided the Biden administration’s economic advisers for years, with trade officials pushing for higher duties and others, such as Treasury Secretary Janet Yellen, calling for lowering tariffs on consumer goods while focusing duties on strategic sectors. But signs that China was ramping up exports of clean-energy goods prompted concern in Washington, where officials are trying to protect a nascent American clean-energy industry from China.

Officials are particularly focused on electric vehicles, and they are expected to raise the tariff rate to roughly 100% from 25%, according to the people. An additional 2.5% duty applies to all automobiles imported into the U.S. The existing 25% tariff on Chinese electric vehicles has so far effectively barred those models, often cheaper than Western-made cars, from the U.S. market. Biden administration officials, automakers and some lawmakers worry that wouldn’t be enough given the scale of Chinese manufacturing.

https://www.wsj.com/economy/trade/biden-to-quadruple-tariffs-on-chinese-evs-203127bf

I think tariffs are good, but I know many on here have blasted them for raising prices on consumers.

[JohnSJ]

1. I think trade wars are bad, and they contribute to inflation. It is that simple. As for electric vehicles, they are

already too expensive, a limited infrastructure, and current government credits have narrowed the number of vehicles that qualify.

[Silent3]

11. Broad tariffs on already-popular products would be inflationary. A tariff targeted at a nascent market...

...however, will just discourage products from the targeted country from being purchased in the first place.

Would this narrowly targeted tariff kick off a trade war? Hard to say. But I think it's perfectly fair to protect American businesses from highly-subsidized Chinese products where China is willing to sell at a loss in order to take over the market, then inevitably raise prices if that plan succeeds.

[redqueen]

2. This is honestly enraging.

But signs that China was ramping up exports of clean-energy goods prompted concern in Washington, where officials are trying to protect a nascent American clean-energy industry from China.

Once again it's not the climate OR the consumer that matters.

Sigh.

[David__77]

3. Bad news for market transformation.

EVs need to be cheap and very plentiful. They need be cheaper than gas powered cars actually

[Barry Markson]

4. The UAW endorsed President Biden for re-election

This is their reward.


https://uaw.org/uaw-endorses-joe-biden-for-president-of-the-united-states/#:~:text=%E2%80%9CToday%20I'm%20proud%20to,for%20the%20whole%20working%20class.

[Melon]

5. This has to be done to protect and grow the US industry

China manufactures believe in taking no profits, wiping out competitors through pricing wars, and then taking the market. I have just returned from meetings in Guangzhou and these similar discussions. The Chinese government heavily subsidizes these markets. EV vehicles in China can be had for $15K in China well below manufacturing cost globally. US makers and EU outside of Tesla are already losing money on every car.

[Voltaire2]

6. Tariffs are a bullshit way for a developed economy to compete.

They make sense for protecting developing economies.

The reason why Chinese manufacturers currently have a price advantage is primarily because they now have innovative battery tech that is cheaper lighter and better than domestic manufacturers.

[Melon]

9. This is not true

The next generation battery technology doesn’t look like what any manufacturer currently has out. And Chinese batteries are sometimes a little better and sometimes worse depending on manufacturer. Build quality on high end Chinese cars is good but not on the economy vehicles. Safety is not as good as Tesla or domestic on any other cars. There EV’s are subsidized by the Chinese government.

[Voltaire2]

10. We subsidize our evs.

There is a direct $7500 federal subsidy for ev purchases.

[Melon]

12. For domestic consumption...the federal subsidy

Is geared to boost a foothold in domestic consumption of EV..’s. China will sell below cost in other countries to displace and destroy domestic production. Entirely different.

[MichMan]

13. Do Chinese manufacturers pay UAW wages and benefits?

[JustABozoOnThisBus]

7. What if the Chinese build assembly plants in Mexico or Canada?

Or in the U.S.?

Any tariff issues there?

[former9thward]

8. I would like to see anyone build assembly plants in the U.S.

China or anyone else. Not only would that create U.S. jobs, but the raw materials and parts needed would most likely come from the U.S.