America Looks to Increase Tariffs on Chinese Electric Cars

China has successfully achieved fruitful results in the field of electric vehicle production and is on the verge of becoming the world’s largest supplier of electric cars. Chinese companies have already dominated around 60% of global sales of new electric cars, reaching 14.1 million in 2023. This has prompted the United States to make serious decisions in this regard.

Tariff Increase

The Wall Street Journal pointed out that the United States administration is currently exploring the possibility of increasing tariffs on electric cars coming from China, considering it an entirely unfair deal due to their widespread presence in markets at very low prices.

This comes after a group of U.S. lawmakers from both the Republican and Democratic parties submitted a request last month to the U.S. administration to consider increasing tariffs on Chinese-made electric cars. The request also emphasized the need to find ways to prevent Chinese companies from exporting their sales to the United States through Mexico.

Chinese Car Taxes

Chinese cars in the United States were subjected to a 25% tax during the administration of former President Donald Trump, and it has been extended during President Biden’s term. The newspaper had previously added that the current tariffs on Chinese cars are no longer sufficient.

China’s Stance

A spokesperson for the Chinese Foreign Ministry confirmed that U.S. tariffs violate the principles of market economics and fair competition, considering the U.S. actions a clear violation of World Trade Organization rules.

How will China overcome the obstacles between it and the global spread of its electric vehicles? Is this truly fair competition?

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