USA to impose a 100% barrier tax on Chinese EV imports

According to The New York Times citing rumors, the United States are in a position where they have to ramp up their trade war with China. Soon enough, multiple sources are expecting the import fees on all China-made EVs to go up from 25% to 100%.

Ex-President Donald Trump’s administration enacted the 25% fee six years ago. Reports are now coming in that President Joe Biden will announce the decision to quadruple it tomorrow, May 14. It will essentially serve as a protectionist “barrier tax” meant to deter further Chinese electric car imports.

The same fee will allegedly apply to solar panels, batteries and other clean energy vehicle components. It wouldn’t surprise us to see it adopted, because the local automotive manufacturers in the USA cannot compete with China and its extreme pricing policies. Furthermore, opinions are being voiced that the Chinese government actively subsidizes its automakers to be competitive on the international market, even if it means predatory pricing and aggressive undercutting.

With that said, some believe not even a 100% import tax will be enough. For once. Senator Sherrod Brown, from Ohio, is calling upon the authorities to ban Chinese EV imports altogether. We will see how the situation will develop in the coming few days.