The Biden administration has confirmed significant tariff increases on Chinese imports, including a 100% duty on electric vehicles, as part of an effort to protect U.S. industries from China’s overproduction and state-driven subsidies.
The tariffs aim to strengthen U.S. strategic industries, particularly in electric vehicles and renewable energy, as part of a broader strategy to reduce dependency on China’s supply chains. These tariff hikes will go into effect on September 27, 2024. According to the Whitehouse, these tariffs are designed to counteract the significant cost advantages Chinese EV manufacturers have due to subsidies and to protect the U.S. EV market from being overwhelmed.
The Biden administration has largely disregarded industry requests for tariff relief on critical materials for EV batteries, such as graphite, maintaining a 25% tariff on lithium-ion batteries for EVs, effective September 27.
These moves follow similar actions by the European Union and Canada, which have also announced tariffs on Chinese EV imports. China has vowed retaliation, criticizing the U.S. actions as “bullying” and arguing that its EV industry’s success is driven by innovation, not government subsidies.
This article was co-written using AI and was then heavily edited and optimized by our editorial team.
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