The Biden administration has confirmed it will implement a 100% tariff on Chinese-built electric vehicles (EVs) starting September 27, 2024. This decision, announced by the Office of the United States Trade Representative (USTR), quadruples the previous 25% tariff rate.

According to the USTR, the Biden administration announced a series of significant tariff increases on Chinese imports, set to take effect on September 27, 2024. The most notable is a 100% tariff on Chinese EVs. In addition, the United States (U.S.) will impose a 50% tariff on solar cells and 25% tariffs on steel, aluminum, EV batteries, and critical minerals.

Looking ahead to 2025, the Biden administration plans to implement further tariffs on semiconductors. These measures are part of a broader strategy to counteract China’s state subsidies and incentivize U.S. manufacturers to diversify their supply chains away from Chinese dominance.

Lael Brainard, the White House’s top economic advisor, described the new tariffs to Reuters as “tough, targeted” measures designed to counteract China’s state-driven subsidies. “The 100% tariff on electric vehicles here does reflect the very significant unfair cost advantage that Chinese electric vehicles in particular are using to dominate car markets at a breathtaking pace in other parts of the world,” Brainard stated.

With growing concerns from both the U.S. and Europe about China’s increasing dominance in the global EV market, the European Commission recently concluded a probe into Chinese automakers, determining that they had been “unfairly” subsidized for exports to the region.

As a result, the new implementation of tariffs on Chinese EVs went up as high as 36.3% with differing rates on certain Chinese automakers. Interestingly, the EU is considering adjustments in these tariff rates. Tesla’s rate is expected to drop to 7.8%, while Geely may see a slight cut to 18.8%. BYD’s tariff will remain unchanged at 17%. For SAIC and other non-cooperating manufacturers, the maximum tariff may decrease to 35.3%. In addition, it should be noted that the EU is aiming to hold a vote on bringing definitive tariffs on Chinese EVs on September 25, according to Bloomberg.

Read More: EU Revises Tariffs on Chinese EVs With Tesla’s Rate Slashed To 9%

In response, China has threatened retaliation against these measures, describing them as “bullying.” The ongoing trade dispute has also prompted other nations to take action, with Canada recently announcing its own 100% tariff on Chinese EVs.

While the U.S. contends that these tariffs are necessary to protect domestic industries, the move signals a continuing trend of trade tensions between the world’s two largest economies. With EVs becoming more prevalent in the automotive landscape, these trade policies are likely to have far-reaching implications for the future of EV production and international trade relations.

Want to learn more about EV? Thinking of buying an EV? Head over to EV.com discover more.

EV.com is the world’s 1st Electric Vehicle (EV) marketplace that aims to promote zero-emission mobility by providing a platform for consumers to learn about, compare, and purchase EVs.