US government makes Chinese cars virtually unsellable

Quadrupled import tax

Polestar 2 USA

The United States is raising tariffs on imports of many Chinese goods, including cars. The import duty on Chinese cars will increase to 100 percent, effectively pricing them out of the market.

The US government is imposing higher import duties on electric cars, chips, batteries, steel and important minerals, among other things, the White House reports. The tariff on imports of electric cars built in China will quadruple to 100 percent this year. The measures are intended to encourage China to “end its unfair trade practices related to technology transfer, intellectual property and innovation.”

In addition to tariffs on electric cars and chips, the US government is tripling tariffs on some steel and aluminum products and on batteries and battery parts for electric cars. The tariff on graphite and some other important minerals will increase from 0 to 25 percent and the levy on solar cells will double from 25 percent to 50 percent.

The move follows a review of tariffs imposed during the trade war between Washington and Beijing, in which then-President Donald Trump introduced duties on about $300 billion of goods from China. In the presidential elections in November this year, President Joe Biden will again face his Republican rival Trump.

China’s Foreign Ministry said China will “oppose the unilateral tariff increases,” which it said violates World Trade Organization (WTO) rules. “China will take all necessary measures to safeguard its legitimate rights and interests,” a ministry spokesperson said.

In addition to the US, the European Union has also stepped up the campaign against ‘unfair’ Chinese trade and economic practices. Western countries say China is using its industrial overcapacity to fuel its own growth by flooding global markets with cheap products, including electric cars and steel. The EU is also threatening new tariffs on electric cars from China, accusing Beijing of illegal government support for the sector to keep prices artificially low.

– Thanks for information from Autoweek.nl

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