Punitive tariffs on Chinese electric vehicles in the US are about to quadruple

The US administration announced on September 13 that it will increase tariffs on electric vehicles and some other Chinese goods starting September 27 as part of an effort to maintain the competitiveness of American workers and related industries.

The punitive tariff on Chinese electric vehicles will be quadrupled to 100% from the current 25%. (Source: AFP)

The punitive tariffs on electric vehicles from the Asian giant will quadruple to 100% from the current 25%, and tariffs on lithium-ion batteries for electric vehicles will increase to 25%, up from 7.5%, according to the Office of the US Trade Representative. Both new tariffs will take effect on September 27.

Previously, the EC - the European Union's (EU) trade policy watchdog, was moving towards proposing a final tariff of up to 35.3% on electric vehicles manufactured in China, in addition to the current import tariff of 10%.

The proposal will be voted on by the 27 EU member states. It will be implemented by the end of October if a majority, or 15 member states representing 65% of the EU population, do not vote against it.

In an effort to persuade EU member states to reject the proposed tax on electric vehicles (EVs), Chinese Commerce Minister Wang Wentao will travel to Italy next week, where he is expected to meet with Italian Foreign Minister Antonio Tajani and Industry Minister Adolfo Urso in Rome.

Italy initially backed taxing Chinese electric vehicles in a non-binding vote by EU member states in July 2024, along with France and Spain. However, during a visit to China, Spanish Prime Minister Pedro Sanchez said on September 11 that EU member states and the European Commission (EC) should reconsider to avoid a possible “trade war”.

Asked whether Italy's position on the issue had changed, Urso said on the sidelines of a parliamentary question-and-answer session that he hoped for a negotiated solution.

However, while the electric car market in the West has not achieved the high growth rate of previous years, even stagnating, China continues to announce positive results with the fastest electric car growth rate in the world.

Carscoops cited a recent report by research firm Rho Motion that showed that China has become the first country in the world to record more than 1 million electric vehicles (including hybrids) sold in a single month. This record sales was set in August 2024, up 33% compared to the same period in 2023.

Source: https://baoquocte.vn/thue-trung-phat-doi-voi-xe-dien-trung-quoc-tai-my-sap-tang-gap-4-lan-286237.html