US Plans to Quadruple Tariffs on Chinese Electric Vehicles from 25% to 100%

The U.S. government plans to quadruple tariffs on low-cost Chinese electric vehicles and other eco-friendly products.

According to major foreign media including The Wall Street Journal (WSJ) on the 10th (local time), the Biden administration has decided to raise tariffs on Chinese electric vehicles from the current 25% to 100%, a fourfold increase. This is separate from the 2.5% tax imposed on all vehicles exported to the United States.

The Biden administration plans to announce supplementary measures related to the tariff review on Chinese products, including this increase, as early as the 14th. WSJ reported, "Even with the existing 25% tariff, the U.S. has effectively blocked the market entry of low-cost Chinese electric vehicles. However, the government and some automakers have expressed concerns that this is insufficient to counter China's aggressive low-price supply."

Since 2022, the Biden administration has been reviewing the total $300 billion tariffs imposed on Chinese products under Section 301 of the Trade Act (Super 301) from the Trump administration era.

Accordingly, additional tariff increases are expected in key strategic sectors such as critical minerals, solar cells, and batteries. Earlier, Bloomberg reported that the U.S. government would announce new tariffs on Chinese products, including electric vehicles, next week.

Last month, President Biden instructed the U.S. Trade Representative (USTR) to raise tariffs on Chinese steel and aluminum products from the current 7.5% to 25%. The USTR has also launched investigations into China's unfair trade practices in the maritime, logistics, and shipbuilding sectors.