White House levy to protect US makers from cheap imports likely to inflame trade tensions

The US president, Joe Biden, has announced a 100% tariff on Chinese-made electric vehicles as part of a package of measures designed to protect US manufacturers from cheap imports.

In a move that is likely to inflame trade tensions between the world’s two biggest economies, the White House said it was imposing more stringent curbs on Chinese goods worth $18bn.

Sources said the move followed a four-year review and was a preventive measure designed to stop cheap subsidised Chinese goods flooding the US market and stifling the growth of the American green technology sector.

Despite the risks of retaliation from Beijing, Biden said the increased levies were a proportionate response to China’s overcapacity in the EV sector. Sources said China was producing 30m EVs a year but could sell only 22-23m domestically.

top 50 comments

sorted by: hot top controversial new old
[–] 172 points 2 years ago (14 children)

I guess Americans will never get cheap electric cars. Make no mistake. US automakers aren’t going to use this tariff to buy time to make competitive cheap electric cars. They’re just going to rest on their laurels and continue to sell large overpriced trucks, SUV and their EV counterparts.

  • source
  • hideshow 14 child comments
  • [–] 36 points 2 years ago (7 children)

    That’s what pisses me off here, I just want something affordable to get from a-b work commute, I’m not spending $80k on an electric suv that I only have because I’m forced into work.

    It’s gonna end up with me buying a moped or small motorcycle to get to work at reasonable cost

  • source
  • parent
  • hideshow 7 child comments
  • load more comments (6 replies)
  • load more comments (3 replies)
    [+] 84 points 2 years ago* (last edited 2 years ago) (37 children)
  • [–] 44 points 2 years ago (30 children)

    The reason why you're saving on Chinese cars is because of huge government subsidies on their side, so they don't play by the rules of the free market either.

  • source
  • parent
  • hideshow 30 child comments
  • [–] 12 points 2 years ago

    It's funny how everyone tries to make China subsidizing cars for its population a bad thing. The US should bet taking note. Taxes should be used to help the population, not the people in charge of the population.

  • source
  • parent
  • load more comments (17 replies)
  • load more comments (6 replies)
    [–] 77 points 2 years ago (6 children)

    The funny thing is, even after the 100% price increase they're still cheaper than american EVs.

  • source
  • hideshow 6 child comments
  • load more comments (1 reply)
    [–] 61 points 2 years ago (6 children)

    Simple way to make this policy make sense. Instead of a tariff on imports make it a huge subsidy on domestic EVs. We can give the military contractors billions, but giving the American people cheap cars is somehow a bad investment? Soon many positive side effects of a direct, non monetary stimulus

  • source
  • hideshow 6 child comments
  • [–] 34 points 2 years ago

    There’s no incentive for US automakers to build cheaper EVs from this. This is just protectionism which is fine when China is subsidizing their production past the point of profitability, but this will still work against making American EVs more affordable.

  • source
  • parent
  • [–] 30 points 2 years ago* (3 children)

    Didn’t US companies that were making EV raise their prices as soon as the government added or increased buyer incentive rebates?

    The greedy assholes basically pocketed the rebate while the consumer got nothing.

    So IMO these manufacturers will just pocket a significant chunk of the subsidy and pass little of the savings on to the consumer. Already many of them claim financial woes, it’s no stretch for them to soak up the cash and say “but we had to…” and get no punishment because the administration doesn’t want to kill the industry it’s trying to support. I mean, $55bn pay packages have to come from somewhere, right?

  • source
  • parent
  • hideshow 3 child comments
  • [–] 9 points 2 years ago (2 children)

    Make the subsidy based on current prices and only EVs that are X price or below qualify. There are solutions, we would just have to, I dunno, craft thoughtful legislation aimed at helping Americans and not companies? Sounds like a lot of work though...

    Or let me put it this way: do you think lawmakers write the laws they sign? Industry groups and lobbyists write the laws, lawmakers tweak them or just sign them.

  • source
  • parent
  • hideshow 2 child comments
  • load more comments (2 replies)
  • [–] 37 points 2 years ago (6 children)

    They're banning 25 year old kei trucks, they were definitely not gonna allow China to compete.

    God forbid we try to save the planet without making morbillions in shareholder value first.

  • source
  • hideshow 6 child comments
  • load more comments (6 replies)
    [–] 29 points 2 years ago (9 children)

    When China opens up it's domestic market to international goods then the rest of the world should consider doing the same. Until then, match every barrier to entry.

  • source
  • hideshow 9 child comments
  • load more comments (9 replies)
    [–] 28 points 2 years ago (1 child)

    hell yes Americans hate cost effective stuff

  • source
  • hideshow 1 child comment
  • [–] 27 points 2 years ago (4 children)

    Lol he's beating Trump to it. It won't help him at all, but it is funny because it will piss the orange asshole off.

  • source
  • hideshow 4 child comments
  • [–] 23 points 2 years ago

    It's the chicken tax all over again

  • source
  • [–] 17 points 2 years ago (10 children)

    Nice try, Joe, but I will never buy a Tesla. Ever.

  • source
  • hideshow 10 child comments
  • load more comments (10 replies)
    [–] 16 points 2 years ago

    I'm still more interested in one than I am a Tesla.

  • source
  • [–] 11 points 2 years ago (2 children)

    They'll just make all the parts and send them to the US for assembly.

  • source
  • hideshow 2 child comments
  • [–] 8 points 2 years ago (21 children)

    How can anyone see this and not see that the US is a manipulative shithole country? Champion of the free world markets except when they aren't winning, then closed market manipulation and government interference.

    The US hasn't been ahead for many years and they can't innovate. So now they just want to keep out actual progress.

  • source
  • hideshow 21 child comments
  • [–] 31 points 2 years ago (18 children)

    And China isn’t trying to manipulate the market? These Chinese cars are all sold at loss.

  • source
  • parent
  • hideshow 18 child comments
  • [–] 15 points 2 years ago (7 children)

    Nobody wants to listen to reason or actually think any of this through they just want their artificially cheap products. The same people who claim to support unions and raising wages for average workers are now arguing against both because they might be able to get one new car out of the deal before all the competition crumbles and we're back to high prices and beholden to China for all our automotive needs. It's ridiculous to have to keep reading this hypocrisy over and over again.

    Apparently used vehicles are so 2020 and we should scrap all 220 million of them and build brand new ones because that's what's good for the environment.

  • source
  • parent
  • hideshow 7 child comments
  • load more comments (7 replies)
  • load more comments (10 replies)
  • load more comments (2 replies)
    load more comments
    view more: next ›