Biden rumored to announce quadrupling of tariffs on Chinese EVs, up to 100%
The US government is reportedly set to announce wider tariffs on several categories of Chinese goods, including various green products like solar panels and batteries, medical goods, and in particular an increase of tariffs on Chinese EVs from 25% to 100%.
The rumors were first reported late Thursday that tariffs would be extended after a multi-year review of “section 301 tariffs” that had been implemented under the previous administration.
Then today, Wall Street Journal reported that these tariffs would not just be extended, but expanded, with tariffs on Chinese-made EVs quadrupling from previous levels.
Currently, all cars made in China are subject to a 25% tariff when imported to the US, on top of an additional 2.5% tariff that all foreign-made cars are subject to, totaling 27.5%. This large tariff has had the effect of excluding Chinese autos from the US market, as it’s easier to export to countries with lower tariffs first.
However, given Chinese EVs are incredibly affordable, even a 25% tariff might still result in competitive prices. For this reason, it has been considered inevitable by most observers that eventually Chinese EVs would make their way into being sold in the US.
It seems that Biden has also decided that the 25% tariff wouldn’t be enough to forestall the advance, and has decided to instead quadruple it to 100%, meaning that Chinese EVs will effectively sell for double the price they would otherwise if brought to the US. While this has not been announced yet and the White House has declined to comment, an announcement on the new tariffs is expected on Tuesday.
Tariffs have been called for by several entities in the US (and Europe), as Chinese EV manufacturing has rapidly ramped in recent years.
China was originally somewhat slow to adopt EVs – in 2015, EV market share was just .84%, similar to the US market share of .66% and well below California at 3.1% at the time. But in 2023, US market share had risen to a meager 7.6% and California to just 21.4%, whereas China’s EV market share was a whopping 37%, leapfrogging several other leading countries in the process (and it was just 5% in 2020, so the turn upwards has been very rapid over the last 3 years). It caught foreign manufacturers by surprise, leaving ICE car values plummeting in China as consumers are simply not interested.
Despite the massive swing upwards in Chinese EV interest, EV manufacturing has risen even more rapidly. This has left Chinese automakers with more than enough vehicles for the export market, and they have started exporting so many to Europe that they can’t find enough ships to carry them.
Those EVs haven’t made their way to the US yet, but most think that it’s inevitable that they will soon. But with these increased tariffs, that makes it a little less likely that US consumers will gain access to these cheap, high-tech Chinese EVs.
This isn’t the first move that Biden has made to limit the ability of the Chinese auto industry to operate in the US. The Inflation Reduction Act which updated the US EV tax credit included protectionist measures to disallow Chinese-sourced EVs from taking advantage of the credit. To qualify, EVs must be assembled in America and must have a certain percentage of components sourced in the US or US free trade countries, and can’t include parts from “foreign entities of concern” (though there are some ways around this).
The net effect of the regulation is that batteries sourced from China have a harder time getting access to US tax credits, thus reducing their competitiveness in the US market.
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Honda is set to pull the covers off a new electric motorcycle on September 2, teasing the upcoming reveal with camouflaged images on the brand’s social media. The upcoming unveiling is sparking speculation that this could be one of the first models in Honda’s long-promised push into more powerful motorcycle electrification.
The teasers show the shape of a motorcycle with fairly conventional proportions, including a two-up seat, standard riding posture, single-sided rear swingarm, and no visible foot-forward scooter ergonomics, which suggests this will be an honest-to-goodness motorcycle rather than an e-scooter. The bodywork looks sporty but subdued, lacking the aggressive fairings of a supersport, which may point to a street-oriented commuter or naked bike. In fact, it looks a lot like the EV Fun Concept unveiled by Honda last October in Milan, seen above.
Street commuter bikes are common among electric motorcycle makers. They capitalize on the strengths of electric drivetrains without requiring the long range associated with touring motorcycles. It’s a move we’ve seen play out time and again among brands like Can-Am, Kawasaki, Ryvid, and others who have produced smaller, urban-focused electric motorcycles in the last few years.
This aligns with Honda’s previously stated plans. The company announced years ago that it would introduce at least 10 electric motorcycle models by 2025, ranging from commuter vehicles to high-performance machines. So far, its progress has been modest, with small-scale launches focused around electric scooters and prototype testbeds like the CR Electric motocross bike.
Whispers from Honda have hinted at an upcoming street bike, and some observers believe this new model could be the production version of that EV Fun Concept from EICMA Milan Motorcycle Show. Whether it uses Honda’s swappable batteries like the EM1 e: remains to be seen, but it’s likely to target daily riders in urban markets rather than aiming for long-range touring or high-speed sport performance.
Honda has been characteristically cautious in its entry into the electric space, especially compared to startup rivals and brands like Zero, LiveWire, and Ryvid. But the September 2 reveal may signal a new chapter as the world’s largest motorcycle manufacturer finally takes electric motorcycles more seriously.
We’ll be watching closely to see what Honda brings to the table, especially as legacy brands start feeling pressure from both regulators and riders to electrify their lineups.
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With its tire-blistering acceleration and record-setting performance, the Xiaomi SU7 Ultra has been getting attention throughout the auto industry, impressing everyone who’s seen it. That “everyone” now seems to include the OG supercar brand, itself.
CarNewsChina posted pictures from a Weibo user that reportedly show a Xiaomi SU7 Ultra exiting the storied Ferrari factory in Maranello, Italy. According to a Chinese blogger going by 西米露在博洛尼亚 (which seems to translate to “Sago Dessert in Bologna”), the prancing horse brand is actively benchmarking the Chinese hypercar for its own upcoming EV.
The SU7 Ultra was definitely coming from inside Ferrari’s facility. After verification, we learned this specific vehicle was officially purchased by Ferrari for testing, and the development of their next-generation electric platform.
Yet another Chinese auto blogger, 苏黎世贝勒爷, claims that Ferrari representatives visited Xiaomi headquarters last year, allegedly to discuss the joint development of next-generation high-performance EV motors.
The Xiaomi SU7 Ultra made its debut last year, promising 1,548 hp, sub 2.0-second 0-60 mph times, and a top speed well over 200 mph – all at a price lower than a Tesla Model S Plaid or Porsche Taycan Turbo GT. The car sold out almost immediately after it was unveiled, racking up some 50,000 orders almost overnight.
The new electric benchmark
In the automotive world, “benchmarking” is a process in which car companies systematically tear down each others’ competitive products to compare everything from sound insulation, vehicle ride and handling, component materials, and even manufacturing methods against their own or against other industry leaders. The goal is to evaluate performance, cost, quality, and other key metrics, effectively figuring out “where they stand” in the market.
If Ferrari really did buy an SU7 to benchmark it against their own upcoming electric supercar, it’s more than just a curiosity – it could mean that the highest tiers of automotive innovation have shifted from West to East. Maybe forever.
Featured image via Xiaomi; sources throughout the post.
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We’re finally getting our first teases of the upgraded 2027 Chevy Bolt, built on GM’s battery/motor platform formerly known as Ultium. So far, so good for the vehicle, which will be revealed later this Fall.
Chevy took to social media today to tease the 2027 Chevy Bolt, saying, “You asked, we listened. The #ChevyBolt is back and better than ever. More this fall. 👀”
Chevy ended the original Bolt program with the 2023 model, which was loved by a loyal group of customers (including myself). Some of the major gripes, including charging speed and rear brake lights, already look to be addressed. Also, a new more aggressive fascia is debuting.
Electrek’s take
GM has done an incredible job keeping the 2027 Bolt under wraps. It will be the first GM vehicle with a native NACS port after the Cadillac Optiq-V, which we spied in Seattle last week.
Hopefully, the new Bolt will have improved charging speeds over and above the 54kW that previous Bolts adhered to. One possible downgrade is that the old Bolt’s amazing wireless CarPlay/Android Auto system will likely be replaced by GM’s move to Android’s built-in experience. For a few years, the Chevy Bolt was the most affordable long-range EV, and it won our 2022 Electrek car of the year for its versatility and price.
I would, of course, like to see the new Bolt as a hot hatchback, but GM CEO Mary Barra has hinted that it will likely take more of the EUV’s SUV form factor. Things like AWD options, SuperCruise, pricing, power and range are yet to be revealed, but stay tuned to Electrek for the latest on Bolt developments.
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