Earlier this week, President Biden announced an increase in tariffs for Chinese goods and products across various sectors such as steel and aluminum, semiconductors, electric vehicles (EVs), and batteries. According to the release, "The President has directed his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China."
These are the tariffs that will impact the EV market:
- The tariff rate on electric vehicles under Section 301 will increase from 25% to 100% in 2024.
- The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024.
- The tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026.
- The tariff rate on battery parts will increase from 7.5% to 25% in 2024.
- The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5% to 25% in 2024.
- The tariff rate on semiconductors will increase from 25% to 50% by 2025.
For more information, read the full statement from the White House here.
