Biden imposed tariffs on Chinese EV has little impact mainly driven by politics
The article reported that President Joe Biden on Tuesday is widely expected to roll out new tariffs targeting Chinese electric vehicles and other products, with the move coming as he faces a tight White House race against former President Donald Trump, who was known for his trade fights with Beijing.
Biden said a month ago that his administration could triple the tariffs on Chinese steel and aluminum from their current level of 7.5% on average. Critics have characterized such a move as largely "political symbolism," because the U.S. doesn't rely on China for those metals.
Biden's increased tariff on Chinese EVs (NIO) (LI) - which is expected to amount to 102.5%, up from the current level of 27.5% - is getting a similar reaction. The higher rate will have "minimal near-term economic impact" because of the "extremely low penetration of Chinese EVs in the U.S. market today," Evercore ISI analysts Sarah Bianchi and Matthew Aks, both of whom previously served in the Biden administration, said in a note Monday.
Biden's increased tariff on Chinese EVs (NIO) (LI) - which is expected to amount to 102.5%, up from the current level of 27.5% - is getting a similar reaction. The higher rate will have "minimal near-term economic impact" because of the "extremely low penetration of Chinese EVs in the U.S. market today," Evercore ISI analysts Sarah Bianchi and Matthew Aks, both of whom previously served in the Biden administration, said in a note Monday.
My Take: The tariffs imposed are more politically driven than served any economic purpose because of the low EV penetration rate in the US. Chinese EV makers should worry about tariffs imposed on imported Chinese EV from Mexico or on Chinese made batteries for EV. I also made a post about the US suggesting banning "Chinese connected EVs" like autonomous vehicles.
Related article:
US could ban Chinese connected vehicles or impose restrictions
US could ban Chinese connected vehicles or impose restrictions
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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102332870 : should reciprocate EVs made in US for tariffs. Then Tesla cannot sell the luxury models in China except those model 3s and Ys made in China. Also other US made EVs. ET9 hurray.
ZnWCOP 102332870: It is pointless to apply tariffs (apply to imported goods ) to Tesla because the EVs are made in China. Tesla has very few models - all consider luxury models unlike BYD who sell very cheap EVs .
If the Chinese government is to impose tariffs, it will hurt EU more and eventually Chinese EV makers. This is because EU will impose high tariffs on China and Chinese EV makers (like BYD's, Xpeng and Nio) plan to expand its export will be hurt.
EU has started the anti-subsidy probe on Chinese EV makers (Tesla not in the list) and may impose higher tariffs on imported Chinese EVs. Tesla and EU brand EVs will likely gain most from this tariff war.
BYD, SAIC & Geely Failed to Give sufficient info for EU Anti-subsidy Investigation
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