100% US tariff on Chinese EVs goes into effect on September 27

In May, the Biden administration announced it would impose a 100% tariff on Chinese EVs, effectively quadrupling the previous rate. The new tariff will go into effect on September 27.

It's not just EVs. Tariffs on Chinese solar cells are going up to 50%, while for steel, aluminum, EV batteries, and key minerals the new duty will be 25%. Next year, a 50% duty will be applied on Chinese semiconductors, and from January 1, 2026, lithium-ion batteries, minerals, and components for laptops and cell phones will get a 25% tariff.

The Biden administration disregarded pleas from the auto industry to lower tariffs on graphite and critical minerals needed for EV battery production.

Top White House economic adviser Lael Brainard told Reuters that these decisions have been made to ensure that the US EV industry diversifies away from China and isn't dependent on its supply chains. She said these tariffs are needed to counter China's state-driven subsidies and technology transfer policies that led to over-investment and excess production capacity.

And once again, there was talk of "the very significant unfair cost advantage" that Chinese EVs are using to "dominate car markets at a breathtaking pace in other parts of the world". Of course, the consumer doesn't feature in any of these bold statements - the consumer who now has to buy more expensive EVs as a consequence of these policies.

China has repeatedly vowed retaliation against such "bullying" tariff hikes announced by the US, Canada, and the EU, and continues to argue that its EV industry is successful thanks to innovation, not government support - which would probably have been better phrased as "primarily innovation", or "not just government support", but to each their own.