US tariff policy on Chinese imports impact on electric vehicles and more
TapTechNews August 1st news, the US policy of imposing a 100% tariff on Chinese imported electric vehicles has not only dampened the enthusiasm of Chinese automakers such as Zeekr and BYD to enter the US market, but also brought quite a bit of trouble to local US automakers. The Buick Electra E5 and E4 models, which were originally planned to enter the US market in 2025 and 2026, were shelved due to tariff issues.
However, two days before the new 301 tariff imposed by the US on China officially took effect, the Office of the US Trade Representative (USTR) stated on July 30 that the measure of significantly increasing tariffs on a series of imported products from China, including electric vehicles and their batteries, which was originally scheduled to take effect on August 1, will be postponed at least for two weeks. The Nikkei reported on July 31 that this move was because there were voices in the US asking for a postponement for some products, and the US needed more time for opinion coordination.
According to TapTechNews, this tariff policy not only targets electric vehicles, but also involves multiple key areas such as electric vehicle batteries, solar panels, cranes, steel, aluminum, etc. In addition, the US also imposes a 50% tariff on semiconductor chips exported to China. Medical supplies such as syringes and gloves are also affected, and tariffs have risen significantly.
The Biden administration's decision to impose tariffs has been criticized by many parties. Polestar CEO Thomas Ingenlath publicly expressed dissatisfaction with this regulation in April. The Polestar 2 model is about to face a 100% tariff, and it is not yet clear whether this brand plans to transfer production to a new factory or simply give up the US market. Not only the automotive industry, but other fields are also impacted. According to Reuters, the Port Authority of New York and New Jersey expressed disappointment with the crane tariff, saying it puts a huge pressure on an already tight budget and the cost of each crane may increase by $4.5 million as a result.