In an attempt to improve the market demand and safeguard electric vehicle businesses, the Biden administration is contemplating raising duties on some Chinese items associated with his environmental program, such as electric vehicles (EV).
According to a report, officials are contemplating increasing the tariff rates first imposed under the Trump administration. These tariffs cover around $300 billion worth of Chinese products, and Chinese electric vehicles are currently subject to an import tax of 25%. The domestic electric vehicle manufacturing sector has been hit hard by flat market demand—its percentage of total U.S. sales has barely increased from 3% in January to 4% in September, while the proportion of EVs manufactured relative to all cars has gone up from 3% to 6%—may benefit from new tariffs.
To support his environmental goal, the Biden administration is considering increasing duties on Chinese goods, such as solar equipment and electric vehicle battery packs.
The government is also considering tariff reductions on non-strategic Chinese consumer items.
The manufacturing sector in nations like the United States is facing a challenge from China’s inexpensive exports caused by the country’s poor economy. November fixed-asset investment and retail sales in China fell short of predictions, indicating that the country’s economic growth has not recovered to levels seen before the COVID-19 outbreak.
In its campaign for EVs, the EU is investigating whether to boost tariffs on China’s EVs.
According to a report, Chinese Foreign Ministry spokesperson Wang Wenbin opposes tariff increases because they lead to trade wars that have no winner. China said it will actively monitor events and preserve our legal rights and interests.
As the ‘green’ trend encounters a speed bump, statistics reveal that electric cars (EVs) are stacking up on dealership lots nationwide.
According to a report, EV inventories have climbed by 506% compared to last year, and EVs are staying on for much longer. On average, gas-powered automobiles spend 64 days on the market, whereas electric vehicles spend 82 days, according to the report. GM and Ford are reducing output as a result of weakening demand.
Despite government subsidies, research shows that the majority of individuals still find EVs to be excessively costly.