US slams 100% tariffs on Chinese-made e-cars in crackdown on imports

A car charges at a charging station in Lower Saxony's largest charging park for electric cars. Lars Penning/dpa

The United States is increasing tariffs on electric cars from China from 25% to 100%, the White House said on Tuesday as part on a crackdown on Chinese imports.

The US government is also imposing new or significantly increased tariffs on solar cells, semiconductors, harbour cranes and certain medical products such as protective masks.

"Today’s announcement reflects President Biden’s commitment to always have the back of American workers. When faced with anticompetitive, unfair practices from abroad, the president will deploy any and all tools necessary to protect American workers and industry," a White House statement said.

The White House says the measures are needed because China is flooding global markets with artificially cheap exports. US President Joe Biden has acted despite striving for a stable relationship with Beijing, Lael Brainard, director of the National Economic Council, told journalists.

She said Biden had seen in his birthplace of Scranton, Pennsylvania, what happens when production moves to other countries and that is why he wants to ensure fair competition.

Elon Musk, chief executive of US-based electric car firm Tesla, has also been among those warning that the Chinese manufacturers have an unfair advantage.

According to the US government, imports from China totalling $18 billion are affected by the new measures. Possible retaliatory measures from Beijing are now widely expected.

The decisions have been taken following a statutory four-year review of existing tariffs by US Trade Representative Katherine Tai.

"President Biden is directing me to take further action to encourage the elimination of the People’s Republic of China’s unfair technology transfer-related policies and practices that continue to burden U.S. commerce and harm American workers and businesses," Tai said in a statement.

Biden, who is running for re-election in November, has made tens of billions of dollars available for investments in the chip industry, infrastructure and manufacturing, the White House said, and this is the latest move to help US companies.

Biden's predecessor Donald Trump, who will face him in November's election, imposed tariffs on imports from China during his four-year term.

China denies that its economic policy is fuelling surpluses.

"The so-called problem of Chinese overcapacity does not exist, neither from the point of view of comparative advantage nor in the light of global demand," Chinese President Xi Jinping said recently on a visit to France.

© Deutsche Presse-Agentur GmbH