US looks to 100% China EV tariffs

US looks to 100% China EV tariffs

Business news |
By Nick Flaherty

The US government is set to announce tariffs as high as 100% on electric vehicle on Tuesday according to a number of reports.

As well as a proposed tariff of 100% on EVs made in China and sold in the US, the Section 301 tariffs are expected to include tariffs on solar panels and semiconductors.

The move is likely to lead to further tariffs in the US-China trade war. The US is said to be keen to avoid a repeat of the market for solar panels, where subsidised Chinese products swamped the US market and hit internal production. 

The world’s largest EV maker, BYD in China, plans to launch an electric pick up truck, the Shark, tomorrow, just ahead of the tariff announcement. Its Seagull EV sells in China for $11500 and in Marchi t made its 7 millionth vehicle. The company is vertically integrated, making its own batteries and packs, which makes determining production costs difficult.

The move comes as the US government has subsidised the production of batteries for EVs and solar panels as part of the Inflation Reduction Act (IRA). Swiss panel maker Meyer Burger has just made its first solar panel in its plant in Arizona and German panel maker NexWafe is also setting up in the US, taking advantage of IRA subsidies.

The reports of the tariffs came from several sources quoted by the Financial Times, Reuters and Bloomberg.

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