US tariffs on Chinese EVs may grow from around 25% to 100%
- Reference: 1715619673
- News link: https://www.theregister.co.uk/2024/05/13/chinese_ev_tariffs/
- Source link:
According to the [1]Wall Street Journal, critical minerals, solar goods, and batteries sourced from China will also receive the higher tariffs.
Chinese EV tariffs are expected to go from 25 percent to 100 percent, cementing a pricing-out of the EV product in the US market, even as Chinese EV manufacturing soars.
[2]
China's Foreign Ministry spokesperson Lin Jian [3]vowed on Friday that China would take "all necessary measures to defend its rights and interests" when it comes to additional tariffs.
The PRC could also retaliate with more export bans on certain critical materials, or block Chinese companies from using semiconductors from Intel or other American companies.
The existing tariffs were introduced during the Trump administration. The increase was made as part of a planned review of the policy. The former president has [4]detailed that if he were re-elected, tariffs on Chinese goods would increase by 60 percent of more, despite his claims of being besties with Xi Jinping.
Lin said on Friday: "Tariffs imposed by the former US administration on China have severely disrupted normal trade and economic exchanges between China and the US. The WTO has already ruled those tariffs [are] against WTO rules. Instead of ending those wrong practices, the US continues to politicize trade issues, abuse the so-called review process of Section 301 tariffs and plan tariff hikes."
[5]Biden's State of the Union included a battle cry against AI mimicry
[6]EU duties might not be enough to hold off flood of Chinese EVs
[7]Hypothetical TSMC invasion 'absolutely devastating' says Raimondo
[8]China's SMIC sounds alarm on price wars from silicon surplus
Steven Okun, who served in the Clinton administration and is currently the CEO of consultancy APAC Advisors, [9]previously noted that the genesis of these actions go back ten years with the 2015 creation of the Made In China campaign. The push was kickstarted when China said it was going to use industrial policy, preferential access and state subsidies to dominate industries like electric vehicles. Tariffs between the US and China go back much further than Trump.
According to the former Clinton Deputy General Counsel, there's no question about it, China will retaliate.
[10]
Okun told The Register there will likely be slow-rolling regulatory approvals for US companies.
The PRC could also retaliate with more export bans on certain critical materials, or block Chinese companies from using semiconductors from Intel or other American companies, Okun said. ®
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[1] https://www.wsj.com/economy/trade/biden-to-quadruple-tariffs-on-chinese-evs-203127bf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZkKNg7Z@8a0EFENClF9I@AAAAFY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.fmprc.gov.cn/mfa_eng/xwfw_665399/s2510_665401/202405/t20240510_11302796.html
[4] https://www.cnbc.com/2024/03/11/trump-pledges-to-get-tough-with-tariffs-again-if-elected.html
[5] https://www.theregister.com/2024/03/09/biden_2024_sotu/
[6] https://www.theregister.com/2024/04/30/report_eu_duties_electric_vehicles/
[7] https://www.theregister.com/2024/05/09/hypothetical_tsmc_takeover_by_china/
[8] https://www.theregister.com/2024/05/10/smic_chip_price_war/
[9] https://www.cnbc.com/video/2024/05/13/no-question-china-will-retaliate-against-us-tariffs-advisory-firm.html
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZkKNg7Z@8a0EFENClF9I@AAAAFY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://whitepapers.theregister.com/
Re: Yawn...
I just want my gasoline prices back to $1.85 per gallon.
Sorry. Didn't you know gasoline is dark, satanic and killing the planet? So ICEs are going to be banned, and the UK's just announced it's banning ICE motorbikes. Hopefully setting the scene for conlficts between two sets of 1%'ers.
But I've been re-reading one of my favorite economics texts (Merchant Princes, Charles Stross) and thinking about current policies & urban planning. So US towns and cities built up and were zoned based on people having affordable personal transport. EVs currently break that model, and it would be a collosal task to re-engineer urban areas for a carless future. Our elite will have less crowded roads, but an increasing number of people won't be able to afford to drive.
Re: Yawn...
But I've been re-reading one of my favorite economics texts (Merchant Princes, Charles Stross) and thinking about current policies & urban planning. So US towns and cities built up and were zoned based on people having affordable personal transport. EVs currently break that model, and it would be a colossal task to re-engineer urban areas for a carless future. Our elite will have less crowded roads, but an increasing number of people won't be able to afford to drive.
Don't worry, the mass transport issue will take care of itself in our brave new world!
"Maintain humanity under 500,000,000 in perpetual balance with nature."
Georgia Guidestones Rule # 1
Re: Yawn...
With average new car costs in the US about $40K with nothing on the market under $20K the appearance of a car for potentially $10K or so from an established manufacturer (albeit one not a household name in the US) is likely to be really disruptive. So we're reacting in the only way we know how -- slap on tariffs to make everything expensive. All that stuff you were taught in Econ101 about 'competition seeking the best product at the lowest prices' really was just pie in the sky, BS fed to the masses. The reality is that vehicle supply in the US -- like in the UK -- is run through a well established system of monopolies, all designed to take a fairly expensive product and turn it into a $500-$700 (or so) monthly payment.
Unfortunately, in the US we can't just go without. Our public transport systems can be extremely spotty and unreliable, even when subsidized to the hilt, so for many places cars are a must. (...and no, we're not all car obsessed -- I don't think anyone commutes by car in Los Angeles because they want to, they do it because they have to).
So yes, the Chinese have been figuring how to make affordable, usable, electric cars. (They also know how to make IC cars, they've been making them or their components for Western car manufacturers -- we're all for cheap Chinese products if we can stick a decent markiup on them before they're sold.) As for us, the ordinary person -- "screwed yet again....".
Re: Yawn...
But by limiting the supply of EVs to $50K Teslas, $100K cybertrucks and $150K F150s we can massively increase the "investment" in green technologies.
Geniuses .... a Dummies’ Guide
Oh dear. What a palaver. And it is going to get worse still for the West because of the way the American dream is planned to be.
Rampant runaway inflation because of the entertainmemt of compound interest and profit ...... which is money for nothing extra making everything more expensive to buy than to produce ..... eventually, very quickly makes everything too expensive to both produce and purchase at an artificially elevated cost ...... and the masterplan is to think to deny nations the affordable products from neighbours who haven't followed the counsel of fools and carpetbaggers?
Yeah, that'll keep the natives happy and prevent them from revolting. What a load of plonkers.
"defend its rights"
China always talks about their rights when tariffs are increased or one of their corporations is banned. What rights do foreigner companies have in China? Zero.
I suppose we could buy Chinese cars, use them until they break in a couple of years, then strip out the precious metals that China originally refused to export.
Re: "defend its rights"
From what I've heard, the Chinese EV's are pretty good (I know one with an MG and loves it).
Still, could buy a $100,000 Tesla with an interior that is outclassed by an entry level Kia
Nobody Cares About Western Brands in China ..
"So, when automakers, tech companies and regulators push back on China, the sentiments that they’re just protecting our market from unsafe or security-challenged products feel hollow. Instead, it feels like grandstanding, and a tacit admission that they have no intention of trying to do better.
Instead of competing, they’d rather just shut out competition entirely. The concerns about cybersecurity don’t address the elephant in the room here: Your product sucks, compared to what China is putting out now. It doesn’t go as far. It’s not as well-made. It’s not as nice. It’s not as connected."
InsideEVs
P.S. "I’d later learn that the auto show had more than 100 new model debuts and concepts. That’s a far cry from the Detroit Auto Show last September, which only featured one fully new model. Two other models were refreshed versions of current cars already on sale. None were electric."
Nobody Cares About Western Brands in China.
No low cost Chinese EV revolution? Look on the bright side.
No need to rush the EV charger roll out any more as EVs will be expensive and restricted to the wealthy. The real profit will be in ICE vehicle parts and refurbs. A good refurb can take an ICE vehicle back to better-than-showroom with some after market accessories. And maybe stop flogging those scavenged car parts to the developing world by the shipping container. They may be worth more at home when new ICE are banned.
Didn't the Americans panic like this over Japanese cars a while back too?
Yawn...
Oh, no, the trinkets and baubles will be even more expensive. Scary.
I just want my gasoline prices back to $1.85 per gallon.