President Joe Biden.

The White House has announced it will impose tariffs on $18 billion worth of Chinese goods.The new measures target Chinese EVs, with tariffs rising from 25% to 100%. It comes as fears grow that a wave of cheap Chinese EVs could upend the US market.

Joe Biden has hiked tariffs on Chinese electric cars as he looks to protect the US auto industry from a wave of cheap Chinese EVs.

The White House announced early Tuesday that it was imposing tariffs on $18 billion worth of Chinese goods, including a 100% tax on Chinese-made electric cars.

The tariffs also target lithium batteries, solar cells, and semiconductors, and are likely to inflame tensions between the two economic superpowers further.

The rise in tariffs on Chinese EVs — from 25% to 100% — will likely be a relief for the US auto industry, which has become increasingly nervous about the prospect of competing with electric vehicles sold by Chinese companies at far cheaper prices.

The 25% tariff has largely made it too expensive for Chinese automakers to set up shop in the US.

However, Tesla rivals like BYD, which sells cars for as little as $11,000 in China, are stepping up their plans to export to other countries as competition becomes increasingly brutal back home.

Reports that BYD and fellow Chinese automakers MG and Chery are planning to build factories in Mexico sparked concern from US lawmakers, with several warning that the move could give them a “backdoor” to the US market.

The latest round of tariffs, which also target steel, aluminum, and medical products such as face masks and respirators, do not go as far as those proposed by Donald Trump, who has said he would introduce a 60% tax on all Chinese imports if elected president in November.

Read the original article on Business Insider


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