The United States has announced significant tariffs on billions of dollars' worth of Chinese goods, with new rates set to take effect on September 27, as reported by Central News Agency (CNA). Among the new tariffs, Chinese-made electric vehicles (EVs) will face a 100% tariff, while EV batteries will be subject to a 25% tariff. The U.S. stated that these tariffs are a direct response to China's harmful policies that negatively affect American workers and businesses. This move follows the White House's decision in May to increase tariffs on critical Chinese exports, including EVs, semiconductors, and solar panels, further escalating U.S.-China tensions ahead of the upcoming U.S. presidential election.

 

Meanwhile, the European Union is preparing to vote on October 4 regarding a proposed tariff of up to 45% on Chinese-made electric vehicles. According to sources cited by Bloomberg, EU member states have received a draft of the proposed measures, though the voting date may shift as last-minute negotiations between the EU and Beijing continue. The European Commission has yet to respond to requests for comment, and the final proposal for additional tariffs—potentially raising the current 10% tariff on imported vehicles to as high as 35.3%—will require approval from 15 of the 27 EU member states, representing 65% of the EU population, for it to pass. If approved, the new tariffs are expected to be implemented by the end of October.

 

According to the Market Intelligence & Consulting Institute (MIC), the U.S. imposing a 100% tariff on Chinese electric vehicles (EVs) is more symbolic than substantial. In 2023, China exported 1.203 million EVs globally, but only 12,400 units—just 1%—were shipped to the U.S. By contrast, China exported 1.55 million passenger vehicles in 2023, with 41.27% going to European countries, indicating that European tariffs would have a far greater impact on China's automotive exports.

 

Although the global electric vehicle market continues to grow in line with net-zero commitments, growth is somewhat slowing. Nevertheless, China remains the largest market for EVs, accounting for 60% of global electric vehicle sales from 2019 to 2023, and this trend is expected to continue. However, as geopolitical tensions escalate, carmakers are increasingly dividing their supply chains into Chinese and non-Chinese segments, MIC noted.