The big headline from President Biden’s new tariffs on Chinese goods announced Tuesday was the massive hit to electric vehicles made in China.
New duties on EVs from companies like BYD (BYDDY), Geely (GELYF), and NIO (NIO) are set to quadruple in 2024, to 100% from 25% of the cost of the vehicle.
But the question remains: Will Biden’s EV tariff move make any difference for EV sales in America?
The White House’s sweeping array of new tariffs will raise duties on $18 billion in Chinese imports, from steel and semiconductors to medical products. But the focus on EVs and manufacturing stands out.
The White House earmarked billions via the Inflation Reduction Act and Bipartisan Infrastructure Law to boost EV adoption and charging and create an American manufacturing industrial complex to support EV production.
Biden’s move to protect his EV bet is not surprising. And the overall effect on the American consumer will initially be slim to none, as there are very few Chinese-made EVs for sale in America.
Currently, only Buick (GM), Lincoln (F), Lotus, Polestar (PSNY), and Volvo (VOLCAR-B.ST) ship vehicles made in China into the US, Sam Fiorani of AutoForecast Solutions noted to Yahoo Finance.
Of those cars, only Polestar imports a Chinese-made EV to the US. Lotus just started…
