Biden may aim to increase tariffs on Chinese electric vehicles fourfold.
The United States is considering implementing fresh trade tariffs on China, targeting significant industries such as electric vehicles, batteries, and solar panels. According to unnamed sources, the forthcoming tariffs could result in a significant increase in existing tax rates.
Sources familiar with the matter claim the U.S. government is set to raise taxes on Chinese energy products in the near future. Tariffs on electric cars from China could potentially quadruple, these individuals suggest. In addition to this, heightened tax penalties would also apply to crucial minerals, solar equipment, and batteries from China, the sources continue. These decisions are being taken after a lengthy assessment of the tariffs enacted by former President Donald Trump on approximately $300 billion worth of Chinese goods.
The Biden administration is reportedly prioritizing electric vehicles and is likely to up the existing 25% tariff to around 100%. Furthermore, all cars entering the U.S. will be hit with a new 2.5% tariff, the sources added.
The 25% tariff that's currently in place has effectively kept Chinese electric cars, which are often more affordable than those produced in the West, out of the American market. The government, automakers, and certain officials felt a 25% tax rate may not be enough due to the vastness of Chinese production.
Bloomberg previously reported that President Joe Biden would be announcing new tariffs in the imminent future, zeroing in on strategic sectors like electric cars, semiconductors, and solar panels. These decisions could have a substantial impact on electric vehicle producer Tesla, which has production facilities in China, as well as Chinese companies BYD and Nio. Furthermore, they could also affect semiconductor producers Nvidia and Intel.
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Source: www.ntv.de
