F - Tariff Hikes On Chinese EVs May Prove To Be Futile

2024-05-13 16:19:55 ET

Summary

• The Biden administration is planning to increase tariffs on Chinese electric vehicles, solar panels, and batteries for EVs.
• The move aims to protect the American clean-energy industry from China's dominance.
• China may respond by imposing tariffs on U.S. EVs and targeting U.S. agricultural exports, potentially escalating the trade conflict.
• An analysis of trade relations between the U.S. and China, the latter's presence in the global EV industry, and potential retaliation from China suggests the U.S. does not stand to gain much from these tariffs.

Washington is planning to hike the tariffs on “new three” green goods imported from China; Electric Vehicles, Solar Panels, and Batteries for EVs. According to people familiar with the matter, as cited by Reuters, the Biden administration is expected to unveil higher import levies on semiconductors and other Chinese products as early as this week, along with new duties of up to 100% on Chinese electric vehicles. The decision comes after a long review of tariffs imposed by former President Donald Trump on roughly $300 billion in goods from China....

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