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Biden quadruples tariffs on Chinese EVs, up from 25% to 100%
The US government has announced wider tariffs on several categories of Chinese goods, including various green products like solar panels and batteries, medical goods, and in particular an increase of tariffs on Chinese EVs from 25% to 100%.
This large tariff has had the effect of excluding most Chinese autos from the US market, as it’s easier to export to countries with lower tariffs first.
However, given Chinese EVs are incredibly affordable, even a 25% tariff might have resulted in competitive prices.
Volvo and Polestar, both owned by Geely, are evaluating the announcement of tariff increases from the Biden Administration.
They are considering diversifying their manufacturing footprint and supporting job creation and economic growth in the region.
Reaction to the move was positive from domestic manufacturing trade associations and labor groups, but negative from economists, consumer advocates, and foreign/global manufacturers.
The move is expected to increase the price of goods for Americans, impacting the EV market and potentially slowing down EV adoption.
Despite the potential negative impact, the decision is seen as a strategic move in the context of an important election just months away.
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