United States: Biden increases tariffs on Chinese electric cars by 100%

The president of United States, Joe Bidenannounced a significant increase in tariffs on Chinese electric vehicles (EV), raising them to 100%.

This measure, revealed on Tuesday, seeks protect the American auto industry from growing competition from affordable electric cars from China, especially in a crucial presidential election year where Democrats have adopted protectionist policies.

According to EFE, The ad also aligns with support for Biden of the powerful United Auto Workers (UAW) union, vital for the mobilization of the labor vote.

Before this decision, the chinese electric vehicles They were already facing tariffs of 27.5% in the United States.

Despite this, brands like BYD and Xiaomi have emerged as strong competitors in the global market, threatening the position of American and other manufacturers.

In 2023, BYD reached a milestone by selling 3 million EVs, surpassing Tesla and positioning itself as the world leader in the sector.

Additionally, Xiaomi, originally known for its consumer electronics production, has made significant strides in the EV industry with models such as the SU7, which has been successfully sold in China.

Data indicates that Chinese EV exports to the United States were relatively low in 2023, adding up to only 368 million dollarscompared to European ones, which reached approximately 7.4 billion dollars.

However, the threat perceived by figures such as Elon Musk, CEO of Teslaand organizations like the Alliance for American Manufacturing (AMA), is palpable.

Musk recently expressed concern that without adequate tariff barriersChinese manufacturers could “destroy most of the world’s car companies”.

The AMA has also warned about the disruptive potential of Chinese EVs, particularly those with extremely low pricessuch as an electric SUV from BYD that would be offered at only $14,000, a price that they say would immediately capture the American market.