TECH - Tariffs National Security Or Climate? Here's Why Chinese EVs Remain Out Of Reach For Americans | Benzinga
In a significant development for the electric vehicle (EV) industry, Chinese-made EVs are poised to challenge the U.S. auto market but face a major hurdle in the form of import tariffs.
What Happened: Despite their global popularity, Chinese EVs have yet to make a significant impact in the U.S. market due to a substantial 27.5% import tariff, NPR reported on Monday. This barrier is a point of contention for the Biden administration, which is balancing the promotion of affordable EVs against the need to protect American jobs in the auto sector.
The high cost of EVs, with an average price tag of around $54,000, has been a barrier to wider adoption. In response, companies like Ford Motor Co. (NYSE:F) and General Motors (NYSE:GM) are developing more affordable models, and Tesla Inc. (NASDAQ:TSLA) is expected to launch a lower-priced EV next year.
However, the upcoming release of a Chinese-made EV by Volvo at a sub-$35,000 price point and the proliferation of extremely low-cost Chinese EVs, such as the $10,000 BYD Seagull, are putting pressure on the U.S. market.