The United States’ recent decision to increase tariffs on electric vehicle (EV) imports from the Chinese mainland—from approximately 25 percent to 100 percent—has sparked concern among industry experts and analysts. They warn that the move could hinder U.S. climate goals, reduce industrial competitiveness, and burden consumers with higher costs. “U.S. consumers mostly haven’t realized how good and how cheap Chinese-made EVs are, and the new tariff increase will stop them from doing so,” noted an article in Foreign Policy magazine. “After all, Americans will be slower about switching to EVs if they’re left with costly options.” The Economist pointed out that shielding domestic producers from foreign competition could dampen their incentive to innovate and offer affordable products. “Behind a 100 percent tariff wall, American officials and corporate bosses will have less urgency to come up with an answer,” the analysis stated. A report by Reuters highlighted that while the tariff hike might offer temporary protection for U.S. auto jobs, it could undermine efforts to combat climate change by slowing the adoption of EVs. Industry executives and analysts expressed concerns that a clean-technology trade war between the United States and the Chinese mainland could drive up costs for EVs, batteries, and related hardware, keeping prices high for consumers. “If General Motors, Ford, and Stellantis don’t have to compete against foreign companies that make EVs, they won’t make them. The market will go to BYD,” said Daniel Becker of the Center for Biological Diversity, an environmental group advocating for stronger climate policies. Carlos Tavares, CEO of Stellantis, one of the world’s leading automakers, described the tariff increase as a “huge trap” during an interview on French television. “When you put a bubble around a market, whether it is the American market or the European market, the first thing you do is create massive inflation within the bubble,” Tavares explained. “And when you create inflation, you hurt the purchasing power of the middle class and you accentuate the technological gap between those within the bubble and those outside who are busy conquering the world.” The potential impact on consumers and the broader market has prompted calls for a reassessment of the tariff policy. Experts suggest that fostering healthy competition and collaboration could be more beneficial for achieving climate objectives and supporting innovation in the EV industry.
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U.S. tariffs on Chinese-made EVs 'risk hurting American consumers'
cgtn.com
