Trump Threatens New US Import Restrictions on Chinese Electric Vehicles

Trump Threatens New US Import Restrictions on Chinese Electric Vehicles

The Chinese are flooding global markets with low-priced electric vehicles, and they’re causing sleepless nights in Detroit.chinese ev cars The threat isn’t just from China itself, which is accelerating its own EV production and plans to become the world’s biggest market by 2040. It’s also from companies like BYD Co., which makes a sporty hatchback with angular lines and a two-tone dashboard shaped like a seagull’s wing. Its price is kept artificially low by massive government subsidies.

No American car buyer can buy a BYD vehicle today, thanks to the US-imposed tariff of 27.chinese ev cars 5 percent on all Chinese EVs, but that could change soon. The Trump administration is threatening to raise the tariff even further, and impose new restrictions on importing Chinese EVs. The plan isn’t about climate change; it’s about protecting America’s domestic auto industry and escalating a brewing cold war with Beijing.

In announcing the new tariffs, top Democratic and Republican lawmakers made clear that their goal is to help struggling automakers in Detroit, Green Bay and other cities that are relying heavily on exports to China.chinese ev cars “From Detroit to Green Bay, communities across the Midwest are suffering from the ramifications of China’s economic coercion and market manipulation,” said Wisconsin Congressman Mike Gallagher, who chairs a panel that investigates competition with China.

To protect its own automakers, the Obama administration enacted a set of rules in 2022 that require EVs to have a significant percentage of their components—including batteries—made in North America.chinese ev cars It’s a complicated and politically risky policy, but it has helped to boost sales of American-made EVs.

China’s manufacturers and state-owned battery producers may grouse about the new restrictions, but it’s in their long-term self-interest to work with Western governments to establish the rules of the road.chinese ev cars That’s what will ultimately make them more successful abroad.

Amid the uncertainty, some Chinese EV makers are already retooling to face the new reality.chinese ev cars Last month, smartphone maker Xiaomi unveiled its SU7 sedan, which is designed to take on Tesla and Porsche in the high-end segment. It has a 310-mile range, a fast-charging feature and a massager in the driver’s seat.

But it’s unclear if Xiaomi’s gamble will pay off. A financial analysis firm expects it to sell 60,000 cars this year and lose money for its first two years of operations. It also faces a political headwind in Europe, where the European Commission has launched an investigation to determine whether Chinese subsidies give made-in-China EVs an unfair advantage.