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Be stubborn! The United States announces a 100% tariff on China's electric vehicles

2024-11-05 Update From: AutoBeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)10/15 Report--

On September 13, local time, the Biden administration said that the United States had finally decided to raise tariffs on some Chinese-made products.

Starting from September 27, tariffs on a range of Chinese imports, such as electric vehicles, chips and medical products, will be sharply raised, with the biggest increase being electric vehicles, the office of the US trade representative said. the tariff rate on electric vehicles from China will be raised from 25% to 100%, and if the 2.5% base tariff imposed by the United States on electric vehicles is taken into account, the final tax rate will reach 102.5%. In addition, tariffs on solar cells will be raised to 50 per cent, and tariffs on electric vehicle batteries, key minerals, steel, aluminum, masks and quayside container cranes will be raised to 25 per cent. Tariff increases for other products, including semiconductor chips, will also take effect in the next two years.

Lyle Brainard, director of the White House National Economic Council, reportedly claimed that the "tough and targeted" tariffs are designed to ensure that the US electric vehicle industry is diversified and freed from China's dominance of the supply chain. However, industry groups believe that, on the contrary, this will disrupt the supply chain because these products are still dependent on Chinese supply. Jason Oxman, chairman of the Washington-based Information Technology Industry Council (ITI), said in a statement: "the Biden administration is committed to a comprehensive, strategic and multilateral approach to China for the benefit of the US economy, American workers and the supply chain. Instead, the Biden administration has repeatedly ignored industry concerns about the economic impact and the resilience of the supply chain and instead imposed more tariffs. Tariffs on certain semiconductors and parts were announced today. It will lead to more chaos and instability in the global supply chain. "

Prior to this, he Yongqian, spokesman for the Ministry of Commerce, said at a regular press conference on 5 September that the Chinese side had made solemn representations to the US side on the issue of tariff 301, and the WTO had already ruled that tariff 301 violated WTO rules. it is even more wrong for the United States to increase tariffs on China. Prior to this, USTR solicited public comments on the results of the tariff review, and most of them opposed the imposition of tariffs or applied to expand the scope of tariff exemption, which shows that the US tariff of 301 on China is unpopular. We urge the US side to correct its erroneous practices, respond positively to the calls from all walks of life, and immediately abolish all tariffs imposed on China.

Although the United States imposes tariffs on electric vehicles from China, according to FIFA data, the proportion of Chinese electric vehicle exports to the US market is small. Data show that in the first half of 2024, vehicle exports were mainly in Russia, Mexico, Belgium, Brazil and other markets, of which the Russian market ranked first, with 478500 vehicles, an increase of 29 percent over the same period last year, while Brazil contributed the most, with an increase of 488 percent over the same period last year. The United States can't even get into the top 15. In other words, the increase of the US export tariff rate on Chinese electric vehicles to 100% actually has little impact on the current development of Chinese electric vehicles, and it even hinders the pace of Chinese electric vehicles entering the US market, but in the face of unfair treatment by the United States, the relevant Chinese departments still make solemn representations.

According to the list released by Yi car, there are no Chinese brands among the top 20 brands in sales in the first half of 2024. The top three brands are Toyota, Ford and Chevrolet, of which only Toyota has more than 1 million vehicles, 1.0194 million vehicles and Honda more than 500000 vehicles.

China is the largest electric vehicle market in the world, and is playing a more and more important role in the international automobile market, which has attracted close attention from Europe and the United States, who regard China's automobile industry as their "enemy" and try to suppress China's automobile industry through political policies, which also brings a lot of trouble to the globalization strategy of Chinese automobile brands.

Earlier, the European Commission disclosed to interested parties a draft decision to impose a final countervailing duty on pure electric vehicles imported from China. Make a small adjustment to the proposed tax rate: BYD: 17.0%; Geely: 19.3%; SAIC: 36.3%; other cooperative companies: 21.3%; all other non-cooperative companies: 36.3%; decided to impose a separate tariff rate on Tesla as a Chinese exporter, which is set at 9% at this stage.

Different from the American market, Chinese electric vehicles have made remarkable achievements in the European market. From 2019 to 2023, the share of Chinese brands such as BYD in the European electric vehicle market soared from 0.4% to 8%. It fully proves its strong competitiveness and wide market recognition. If it comes from the European Union to impose tariffs on electric vehicles from China, it may have no small impact, but it will not only affect Chinese car companies. There are also car companies that make in China and export to the European market, such as BMW, Volkswagen, smart and so on, these brand managers have repeatedly protested.

On September 12, a spokesman for the European Commission said that the price commitment solutions submitted by all electric vehicle manufacturers on the EU electric vehicle countersubsidy case did not meet the requirements, and the European side intended to reject the relevant price commitment applications. In response, a spokesman for the Ministry of Commerce answered a reporter's question on the European Commission's proposal to reject the price commitment solution of the EU electric vehicle countersubsidy case submitted by the Chinese industry, saying that the Chinese side had taken note of the relevant position of the European side. In disregard of the sincerity and efforts of the Chinese industry, the European Commission proposed to reject the flexible solution proposal put forward by the Chinese industry without in-depth communication.

China not only has the greatest sincerity to properly resolve differences through dialogue and consultation, but also has the greatest determination to safeguard the legitimate rights and interests of Chinese enterprises. China will closely follow the follow-up progress of the European side and will take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese enterprises.

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