Key facts
- US imposes tariffs on Chinese electric vehicles, increasing them from 25% to 100%.
- Tariffs on Chinese batteries, including lithium-ion, will quadruple from 7.5% to 25%.
- Tariffs on solar cells will double from 25% to 50%.
- The measures target Chinese industrial overcapacity and unfair trade practices.
- The tariffs are set to take effect over the next two years.
The Biden administration has announced a significant escalation of tariffs on a range of Chinese imports, signaling a tougher stance on trade relations. Effective over the next two years, the tariffs on Chinese electric vehicles (EVs) will quadruple from the current 25% to 100%. Similarly, tariffs on Chinese batteries, including critical lithium-ion batteries used in EVs and energy storage, will see a fourfold increase from 7.5% to 25%. The administration is also doubling tariffs on solar cells imported from China, raising them from 25% to 50%. These measures are part of a broader strategy to protect and bolster domestic industries, particularly in the clean energy and automotive sectors, by countering what the U.S. views as China's industrial overcapacity and unfair trade practices. The move is expected to impact global supply chains and potentially lead to retaliatory measures from Beijing.