U.S.: government imposes 100% tariff on Chinese electric vehicles

On May 14, 2024, the U.S. administration announced significant tariff increases on various Chinese products; these include raising tariffs on electric vehicles (EV) from 25% to 100% and on lithium-ion batteries for EV from 7.5% to 25%.

The U.S. government's decision to expand tariffs is driven by concerns over the influx of cheap, subsidized Chinese goods that could potentially flood the U.S. market, posing a threat to the significant government investments in the EV sector. This move, if not strategically managed, could undermine the progress made through the Inflation Reduction Act and the Bipartisan Infrastructure Law.

Although capturing most of the attention, tariff increases on EV are unlikely to impact U.S. consumers in the short ter