New duties on EVs from companies like BYD, Geely, and NIO are set to quadruple in 2024, to 100% from 25% of the cost of the vehicle.The White House’s sweeping array of new tariffs will raise duties on $18 billion in Chinese imports like steel to semiconductors to medical products. But it is the focus on EVs and manufacturing that stands out.
Of those cars, only Polestar imports a Chinese-made EV to the US. Lotus just started shipping its luxury EV in extremely limited quantities. According tocars across territories like the China, the EU, and the US last year. Even if a generous half of those vehicles are counted as US sales, the percent of Chinese-made EVs sold in America makes up just over 2% of all EV sales.
" got a major EV overcapacity problem. They’re building too many EVs — too many heavily subsidized EVs — for the domestic market and have no choice but to look abroad to offload those vehicles at budget prices. It’s happening already in Europe," said John Bozzella, president and CEO of Alliance for Automotive Innovation in a statement Tuesday morning.
"Chinese EVs and batteries, along with solar products, will be excluded from the US market," free trade expert Gary Hufbauer, senior fellow at the Peterson Institute for International Economics, told Yahoo Finance. "The result will be higher US prices, and slower uptake of climate-friendly technology. This is a regrettable price of the US-China Cold War, and US presidential political dynamics.
“Establishing production facilities outside of China, especially in Mexico or South Korea, will be one of the possible methods of getting around basic legislation.”Advocates for tariffs believe protection from Chinese EV imports are necessary, otherwise American automakers will be overwhelmed by the competition, and a backdoor through Mexico could be the trigger.
SUPPLY AND DEMAND Financial firm LSEG said gas output in the Lower 48 U.S. states fell to an average of 97.2 billion cubic feet per day so far in May, down from 98.1 bcfd in April. On a daily basis, output rose about 1.9 bcfd over the past five days to a four-week high of 98.0 bcfd on Sunday with the return from maintenance of some gas pipes in Texas from a 15-week low of 96.1 bcfd on May 7.U.S.