The Biden administration announced significant tariff increases on China last week, targeting roughly $18 billion in strategic industries, with a sharp focus on electric vehicles . These tariffs, which quadruple to 100% on Chinese-made EVs, are designed to counter China’s unfair trade practices and overcapacity while boosting U.S. industries. The move also aims to strengthen President Biden’s lagging poll numbers heading into the November presidential election.
And demand doesn’t appear to be slowing down. China is reportedly introducing as many as 71 models of EVs this year, many of them equipped with advanced features and priced lower than comparable models in the West.) that sells for around $12,000. Some people are already calling BYD a “Tesla killer,” but with a 100% tariff imposed on the company’s vehicles, it’s unlikely that you’re going to see them on U.S. roads and highways anytime soon.
Another factor to consider is the declining consumer demand for EVs in the U.S. According to the J.D. Power 2024 U.S. Electric Vehicle Consideration Study, the percentage of new vehicle buyers considering an EV has dropped for the first time since 2021. Key issues include a shortage of affordable models, concerns about charging infrastructure and limited consumer understanding of EV incentives. Economic factors like lower fuel prices and high inflation further dent demand.
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