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The US is likely to impose a 100% tariff on Chinese electric cars, a 4x jump from the current 25% rate, sources told Financial Times (FT).
The hike, along with tariffs on other greentech products from overseas, is expected to be announced soon, the report noted.
China’s increased production capacity – a move supported by its government – may lead to an oversupply of cheap EVs in global markets, according to FT.
The potentially higher tariffs could have stemmed from China seemingly overtaking the US in the cleantech industry, including solar panel production. It may also boost Democrats’ anti-China image, in turn affecting the upcoming US presidential elections.
“A quadrupling of this tariff rate, however, would more effectively shield US auto manufacturers from unfairly traded Chinese vehicles before they can gain a foothold in the US market,” said Wendy Cutler, vice president and managing director at the Washington, D.C. office of the Asia Society Policy Institute.
In April, US Treasury Secretary Janet Yellen also voiced concerns about China’s global market power during her visits to Guangzhou and Beijing.
The US and China have already locked horns over a potential ban or forced sale of TikTok in the US. The short-video platform and its parent firm, ByteDance, are pursuing legal action in in response to this matter.
See also: US-China tensions could spark tech breakthroughs, says Matrix Partners China’s David Su
Editing by Miguel Cordon and Eileen C. Ang
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