In the United States, the government applies a 100% tax on Chinese cars. And the effects were not long in coming.
For some time now, all countries have been increasing taxes on Chinese electric cars.
Particularly high taxes
This is of course the case in Europe, with an increase in customs duties that varies according to the manufacturers, but not only. Because this measure is also in force in the United States, where the rules are even more severe. And for good reason, from September 27, electric cars manufactured in China and imported to American soil will be subject to a 100% customs duty. This decision, recently confirmed by the American administration, marks a turning point in economic relations between the two global giants. It is in addition to a series of measures aimed at limiting the growing influence of Chinese industry on the global market. But that’s not all. Indeed, and in addition to electric cars, other technological products from China will be subject to additional taxes. Thus, electric vehicle batteries will be taxed at 25%, while solar panels and semiconductors will see their customs duties increase to 50% from January 1, 2025.
Already visible effects
The US government is thus seeking to curb the rapid growth of Chinese exports, particularly in sectors where technological innovation is key, such as electric vehicles and renewable energies. However, these taxes will very quickly have an effect on the price of cars imported from China. Thus, brands such as BYD or Polestarwhich are aiming to conquer the American market, will be forced to increase their prices, which will make them significantly less competitive. And therefore cause them to lose market share. For example, the Lotus Eletre R Carbon model could sell for $123,700 more than the new Porsche Macan Electric Turbo version in the United States. But this tax could also have significant repercussions, not only for Chinese manufacturers, but also for American and European manufacturers. For example, brands such as Buick, owned by General Motors, could suffer economic retaliation from China.
Suffice to say that the tensions between the two countries are far from over…
