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.
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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.
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.
Whatever makes the O&G industry more money, eh?
Spice must flow
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
Citizen, you must pay tribute to your CEO overlords!
I’m thinking of getting a smart car for city driving since I often have to haul gear from one borough to another, but REALLY don’t want a traditional car, much less an SUV. They seem so much easier to find parking for
If you’re talking about the smart brand car i wouldn’t, they’ve been discontinued in the US so maintenance on them is going to be difficult and expensive.
If you’re American that is, assuming you’re a New Yorker based on usage of borough lol
Are there any other cars that small? The only reason I’m considering in the first place is because of its size. I really fucking hate traditional cars otherwise. I also see them all over the city.
Not that are sold in the US and import/conversion prices are insane. Unfortunately most of our countrymen love massive vehicles so that’s what is sold here, plus the car companies lobbied to have emissions testing be more lenient for massive vehicles
It’s gonna end up with me buying a moped or small motorcycle to get to work at reasonable cost
Actually glad to hear that. That’s one positive outcome from this aggressive nationalist bullshit decision from Biden. Electric cars (even cheaper, smaller ones from China) aren’t an appropriate way to address climate change. Converting car drivers to two wheelers is way more of a positive move and will also have major benefits to traffic and pedestrian safety. Way better than buying a big fucking American electric pickup truck or SUV.
You’re kinda skipping over a few things as well as something the previous comment mentioned.
- Weather. I live in a pretty big metro area that has freezing cold winters and sweltering hot summers (with high humidity).
- Cargo space is definitely something to think about. There are a lot of families that have to drive to a store for a family’s amount of food for the week
- Long distances to get to anything in the suburbs amplifies issues 1 and 2 (including usually no pubic transportation to help)
- The previous commenter mentioned they don’t want a giant SUV and just want an affordable electric car.
All these things are a reason cars are a huge necessity in most of the US. Yes, getting to an area where we can all mostly use 2 wheels would be great, but we should recognize that doing better is a great step forward instead of shooting it down because it’s not perfect.
I say all this as a person who works from home so I don’t have to worry about a commute, has a small car for necessary trips, and does my best avoid unnecessary driving and makes sure to carpool at every opportunity.
Yeah, cause now the cheap competitor they could compare to just got pricier so that means they can also raise prices
Didn’t we already learn this lesson with Harley Davidson?
I guess you’re going to conveniently ignore that most the big US manufacturers have all agreed to stop making combustion engine vehicles by 2035
The funny thing is, even after the 100% price increase they’re still cheaper than american EVs.
Not if they use that money to subsidise American EV’s.
Fair point.
Adjusted for inflation, they’re even cheaper than the Geo Metro was. 1998 Metro is around $19k in 2024 dollars, while some of these Chinese cars are clocking under $14k.
However, you should also expect it to function like a car cheaper than a Geo Metro.
Ahhhh the free market lovers !
tim Apple can use Chinese Labour to build his shit and make a trillion dollars.
You try to save a few thousand bucks on Chinese car ? DIE, TRAITOR.
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.
Oh, like the time in 2009 when the US government gave $81 billion dollars to the automotive industry? Or again in 2023 when Biden put $12 billion in incentives on the table for them to make EVs?
Nailed it. Sick and fucking tired of hearing the “oh China’s unfair subsidies blah blah” bullshit. The US has been doing the same thing, just we’ve had our futures sold to corporation’s profit margins.
Nobody has ever played by the rules of the free market. It’s been a scam from day one.
I mean, Our government could do the same thing to keep costs low and competitive instead of just making them more expensive for everyone.
Government giving money vs government getting money
Yeah, basically the same thing 👍
Google “US subsidies to auto industry”. Add to the numbers . Come and share your result with the class.
So? I never said the USA plays by the rules, I even used the word “either” in my previous reply.
I think what they’re saying is that both countries are subsidising the industries.
Chinese companies are thinking ahead and using the subsidies to sell more vehicles
American companies are, surprise-sur-fucking-surprise, stealing the subsidies to make a few billionaires richer
Yeah but the right way to do it is to stop oil subsidies
That won’t make US made EV cheaper. China relies on what is basically slavery as well, if that’s what you want for US factory workers in order to be able to buy a car for cheap car then I think you don’t have your priorities straight…
I think you might be in a bit of a bubble mate.
https://www.theguardian.com/us-news/2022/jun/15/us-prison-workers-low-wages-exploited
Prison Labour Contribute 11bn to the US economy.
Right, those prisoners working unionized jobs in car factories
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My comment wasn’t about Uyghurs specifically but Chinese work conditions in general
Tell me how much money the CEOs make then tell me how much worker wages have to do with how expensive the cars are.
GM’s CEO makes 28m/year
A drop in the bucket with their 170b in revenue
Their factory workers make way over 20$/h, some make way over 50$/h.
How much do you think Chinese factory workers get paid?
Also uiger slavery
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.
The reason you’re saving on the running costs of a gas car is because of huge government subsidies on the fossil fuel industry.
In order to get subsidies, companies have to concur in public exams pitching their plans. It’s no different whatsoever from getting private funds somewhere else. Private funds are often obtained by way of being close friends with someone - which happens a lot in my country. If anything, getting government subsidies is proof that you have your act together.
It’s a free market.
So is imposing tariffs then
And as a free market, I should choose if I want to pay them.
GM and Ford manufacture in China. It doesn’t affect American designed and Chinese produced vehicles, only companies that are based in China.
These “free market” arguments keep missing the key detail. Reading is hard.
subsidised Chinese goods
I don’t remember China subsidizing American products and then shipping them back to us.
Why do you think that might be ?
One funnels money into American business, the other into the Chinese government. It’s not some secret plan. It’s clearly declared.
Apple has been getting the hell out of building things in China — if you hadn’t noticed.
And what ?
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
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.
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?
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.
AFIK, all the subsides for EVa in the US already require them to be made and produced domestically.
hell yes Americans hate cost effective stuff
And the environment! It’s double whammy of an American policy
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.
Electric cars will not save the planet, they will save the auto industry. Use a bike to get around whenever possible if you actually care.
It’s the chicken tax all over again
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.
I predict Trump will make a day-one promise to remove this tariff calling it terrible, just terrible.
Entirely possible
So Trump can be controlled with reverse psychology, like a 2 year old. Definitely possible.
I’m still more interested in one than I am a Tesla.
They’ll just make all the parts and send them to the US for assembly.
Or Mexico. And honestly I’m fine with that. Create some jobs outside of China for a change.
China has been pretty well known for bringing in their own workers on foreign construction projects. They’re unapologetically nation building. I could easily see them continue to do so with manufacturing.
I wouldn’t be surprised to find out a majority of US cars are manufactured with Chinese parts. The US is absolutely not nation building. The rust belt has been exported and nobody really wants to bring it back.
Nice try, Joe, but I will never buy a Tesla. Ever.
Than buy a Rivian.
I would consider it, though they don’t currently sell anything I would consider to be affordable.
Those pickup trucks do look really nice, though. If I ever triple my salary I might consider one.
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.
I haven’t read this yet but it looks relevant:
https://insideevs.com/features/719015/china-is-ahead-of-west/
Interesting read, thanks
the way to do it is a mile based shipping tax on all goods, but congress would have to do that. This is just dumb.
Edit: it does say these EV’s are subsidized
