The U.S. has been criticized for its 100% tariff on imported EVs from China. The plan poured ice-cold water on U.S aspirations of brands like Zeekr and BYD but also threw a wrench into domestic manufacturers, too. The tariffs are the reason why the Buick Electra E5 and E4 are now on hold, instead of coming to the US in 2025 and 2026 respectively. But now, the tariffs aren’t even coming on time: The U.S. Trade Department said that they’re delaying the implementation of the tariffs by at least two weeks. They were initially meant to go into effect on August 1st.
Keep in mind that these tariffs aren’t just about the 100% tariff on Chinese-made EVs. The new tariffs targeted import tax increases on other key Chinese imports, like EV batteries, solar cells, cranes, steel and aluminum. These are all meant to quell fear of "dumping" from China, which means flooding the market with artificially cheap imports to drive out domestic competition. It also implements a new 50% duty on outgoing semiconductor chips to China. The tariff isn’t just car-related, either. There are tariffs on medical supplies like syringes and gloves that have also increased dramatically.
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The Tariffs Were Meant to Start On August 1st
The 100% tariffs on imported Chinese EVs were meant to start on August 1st. However, some have said this tariff is more political than economic, since the U.S. gets so few Chinese EVs. The only EV imported directly from China is the Polestar 2. The tariffs have forced Volvo to delay its $35,000 EX30 compact EV.
But, the U.S. Trade Representative's Office still has to review more than 1,100 comments before it makes its final determination. After that determination is made, the tariffs will go into effect two weeks later. So we’ve got at least two weeks before the EV tariffs go into effect.
The tariffs have had plenty of detractors. Polestar CEO Thomas Ingenlath expressed his frustration with the vague rules back in April; the Polestar 2 will soon be subject to a 100% tariff. It’s not clear if the brand has plans to move the production of that model to a new manufacturing plant or just kill it entirely. It’s not just the automotive sphere that’s up in arms, either. Reuters quotes the Port Authority of New York and New Jersey as being disappointed with the new tariff’s attack on Chinese cranes, which it claims over-stress its already limited budget. The tariffs on cranes could add $4.5 million on to the cost of each crane for the Port Authority.
Given the big trade deficit (the U.S. has imported $427 billion worth of goods, but only exported $148 billion), it’s not likely that the comments the U.S. Trade Department is currently sifting through will result in reductions in the tariff’s percentages. It’s not clear when the department will be finished going through the comments.
If BYD, Geely or anyone else has aspirations for the U.S., they’re going to have to get really creative.
Contact the author: kevin.williams@insideevs.com
