Joe Biden is expected to unveil new tariffs on Chinese EVs. Here's what that could mean for the sector.
Business InsiderMay 01
Biden Announces Tariffs on Chinese EVs, Solar Panels
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The Facts
US Pres. Joe Biden on Tuesday announced a quadrupling of tariffs on Chinese electric vehicle (EV) imports this year, increasing them from 25% to 100%. Tariffs for lithium batteries for EVs will also jump from 7.5% to 25%, with all lithium batteries set to be included by 2026.
The new tariffs also include an increase on aluminum and steel products from 7.5% to 25%, solar panel tariffs from 25% to 50%, and a new 25% tariff on shipping cranes. Roughly $18B of Chinese goods are estimated to be included.
The Spin
Anti-China narrative
The White House cannot stand by and watch China overtly steal its citizens' inventions and profits. The US made an offer to China for fair trade but was rebuffed. These tariffs are the only way to prevent further disregard of global trade norms and intellectual property rights by Beijing.
Pro-China narrative
These tariffs are just posturing by an administration trying to look tough on China in an election year. They'll fail on two fronts — they won't hurt China because EV exports to the US represent less than 0.1% of its exports, and they also won't help the US because the American economy gave up on manufacturing a long time ago.