Tariffs On Chinese EVs Now Exceed 100 Percent

Chris Teague
by Chris Teague

It’s no secret that Chinese automakers are rapidly expanding into international markets, but the U.S. is determined to make it as difficult as possible for them to gain a foothold here. President Biden recently announced sharp tariff increases on Chinese goods that range from consumer electronics to EVs, pushing the country’s government to promise retaliatory measures.

EV tariffs now extend past 100 percent, with the White House claiming that they represent “unacceptable risks” to the U.S. economy. Chinese automakers enjoy strong government backing and subsidies that make it possible to see vehicles for very little to no profit.

The U.S. exports far fewer goods to China than it receives, but officials here worry that underpriced Chinese vehicles and other products flooding the market would have a significant negative impact on American businesses.

Tariffs on electric vehicles are now 102.5 percent, and duties on some raw battery materials are as high as 50 percent. The changes in the federal EV tax credit rules enacted at the beginning of 2024 also incentivize non-Chinese materials and domestic production.

These new rules may prevent China from taking over the U.S. auto market in the short term, but they won’t do anything to make EVs from existing brands any more affordable or desirable. Beyond being cheap, many Chinese EVs have more compelling tech and features than anything we see here, and preventing new competition in the U.S. is not a good way to spur innovation.

[Image: Consolidated News Photos via Shutterstock]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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9 of 86 comments
  • 1995 SC 1995 SC 6 days ago

    "Tariffs are paid by the customer, not the entities the tariffs are enacted against. Unless they are enacted by a politician of my chosen party. Then they function as intended and are good, sound policy."

    -A bunch of posters here

    • See 2 previous
    • Lou_BC Lou_BC 5 days ago

      @1995 SC - very true. Policy being bad or good often depends on political affiliatiation.

      That's the problem of polarization. One spends all their time countering or removing the other side's policies. It's a huge waste of time and resources.

      What ever happened to pragmatic blending of good ideas from both sides?

      Most people are moderates somewhere in the middle. That's the natural state of people and pendulums.

  • Yuda Yuda 6 days ago

    Yeah with all the friggin problems these things have, last thing we need is more of these things messing up and clogging the roads

  • 1995 SC 1995 SC 6 days ago

    Well I guess that will be the final nail in the Mini EV's coffin here. It was already not especially competitive, had no range and was way overpriced for what you get, but I like to get stuff like that used and well depreciated on occcasion though I likely would have passed anyway due to the Chinese manufacture.

  • SCE to AUX SCE to AUX 5 days ago

    Here's a crazy thought - what if China decides to fully underwrite the 102.5% tariff?

    • See 1 previous
    • Lou_BC Lou_BC 5 days ago

      China could chose to underwrite the tariffs, I doubt they could afford it. A full ban is possible.