New Tariffs Target China's EV Ambitions
- The trade war between the US and China shows no signs of abating. In a surprise move last month, the Biden administration announced a significant increase in tariffs on a specific set of Chinese imports, strategically chosen to target China's burgeoning electric vehicle (EV) industry. - The new tariffs, ranging from 25% to a staggering 100% on certain electric vehicles, aim to shield American manufacturers from what the White House calls "unfairly priced" Chinese competition. This comes alongside increased tariffs on critical minerals and components essential for EV production, like lithium-ion batteries. - While the total value of these targeted imports represents a small percentage of overall US-China trade, analysts believe the move is a calculated strike at the heart of China's ambitions to dominate the global EV market. China is currently the world's largest producer of electric vehicles, and the US hopes to curb this dominance by making Chinese EVs more e...