Biden is considering hiking import tariffs on Chinese EVs, new report says
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Nic Antaya/Getty Images- The White House is reportedly considering tariff hikes on certain Chinese goods.
- This could include EVs, EV batteries, and solar products, per The Wall Street Journal.
- It would be the latest escalation in the US' war on China's fast-growing EV industry.
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China's EV makers are booming — and the Biden administration is now reportedly looking at hiking tariffs in a move that could keep these manufacturers out of the US market.
Government officials are discussing hiking tariffs on Chinese EVs as they seek to protect the stuttering US EV industry from a wave of cheap Chinese exports, according to a report from The Wall Street Journal.
The US already has a 25% tariff on Chinese auto imports, which was previously introduced by President Donald Trump.
That has made it largely impossible for Chinese electric carmakers to make inroads into the US, even as their vehicles — that are often far cheaper than the American equivalents — have become extremely popular in other parts of the world.
The latest tariffs, which are reportedly still under discussion and could extend to Chinese-made solar products and EV batteries, would be a signal that the US government is concerned that this status quo could be about to change.
It comes after the White House announced new rules to make it more difficult for US-made electric vehicles with Chinese parts to qualify for crucial tax breaks.
From 2025, EVs containing components or critical materials provided by companies under the jurisdiction of the Chinese government will not be eligible for the $7,500 tax break included in the Inflation Reduction Act.
The US is also reportedly increasingly alarmed about plans from several major Chinese EV makers, including Tesla rivals BYD, to build new factories in Mexico, with the Financial Times reporting that officials had raised concerns about Chinese investment with their Mexican counterparts.
The prospect of Chinese EV makers beating strict import rules by setting up shop in the US' largest trading partner has caused angst amongst lawmakers.
Members of a congressional committee on China recently warned that Chinese automakers may be able to "gain a backdoor to the US market" through trading partners such as Mexico.
The US Department of Commerce did not immediately respond to a request for comment from Business Insider, made outside normal working hours
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