The US government has announced 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%.
Rumors were first reported last week that tariffs on Chinese-made goods would be extended and expanded after a multi-year review of “section 301 tariffs” that had been implemented under the previous administration.
Previously, all cars made in China were subject to a 25% tariff when imported to the US, on top of an additional 2.5% tariff that all foreign-made cars were subject to, totaling 27.5%. This large tariff has had the effect of excluding most 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 have resulted in competitive prices. For this reason, it was 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 China’s 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.
The move also includes increased tariffs on batteries, battery minerals, solar panels, steel and aluminum, and computer chips. Most of these tariffs go into effect this year, though some will be imposed next year, and there is a tariff exclusion process available for certain exceptions. A list of what products are targeted is available on this White House fact sheet.
Currently only two EVs in the US are made in China, the Polestar 2 EV and Volvo S90 Recharge Plug-in Hybrid. Both companies are owned by Geely, but still headquartered in Sweden, with manufacturing in various parts of the world depending on model.
But the excellent Volvo EX30 is set to release this year at a starting price of $35k, which was inclusive of the 25% tariff. With no other changes, its price would rise to ~$54k – unless or until Volvo moves production out of China, something BYD has also considered in order to enter the US market.
We reached out for comment from both Volvo and Polestar, and this is what we heard back:
As a global manufacturer Volvo Cars is in favor of free trade and open markets. Free trade creates jobs, wealth and economic growth. Volvo believes strongly in the benefits of investing and contributing to the main markets in which it seeks to sell cars, reflected in our $1B South Carolina manufacturing plant where we are creating thousands of jobs building EVs for the US and world markets.
-Volvo spokesperson
We are currently evaluating the announcement of tariff increases from the Biden Administration. As a global company headquartered in Sweden, listed on NASDAQ in New York and operating across 27 markets, we believe that free trade is essential to speed up the transition to more sustainable mobility through increased EV adoption. Production of Polestar 3 is set to begin in South Carolina in the summer diversifying our manufacturing footprint and supporting job creation and economic growth in the region. This important SUV for us will be built in the USA for U.S. and Canadian customers as well as for export to European markets.
-Polestar spokesperson
Unfortunately, neither company was able to provide more details on their current plans for various models – in particular, the two models mentioned above, and the upcoming EX30. We imagine more info will come on that soon.
In general, reaction to the move was positive from domestic manufacturing trade associations and labor groups, but negative from economists, consumer advocates and foreign/global manufacturers. And negative, of course, from China, whose Ministry of Commerce said it “will take resolute measures to defend its rights and interests.” This likely includes a lawsuit in front of the World Trade Organization and/or retaliatory tariffs, as is usually the case in trade wars like this.
These tariffs had 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 thought that it was inevitable they would soon. But with these increased tariffs, that makes it 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 IRA is that batteries sourced from China have a harder time getting access to US tax credits, thus reducing their competitiveness in the US market.
Electrek’s Take
I wrote a piece this weekend about how these tariffs are not a good idea. It’s long but I’d encourage giving it a read.
The basic idea is that protectionist trade measures generally cause more chaos than they’re worth, fail to protect the industries they are intended to protect, and lull industry into a false sense of security thus making it less competitive in the long run. If protectionist measures are needed, it’s better to encourage domestic industry with incentives than to implement tariffs.
And Biden has implemented targeted incentives and regulations to help the domestic EV industry – the Inflation Reduction Act, various EPA regulations and grants, and so on – most of which have helped to keep prices down for Americans while making the US more competitive in EV manufacturing.
But it seems like there’s no way these particular tariffs don’t increase the price of goods for Americans, which is something America (and the world) is struggling with right now.
The administration says that it does not expect much overall inflation because these tariffs are aimed at industries which Biden has targeted for growth, but for us in the EV world, that means prices of the main thing we follow – EVs – will likely rise.
Current EVs that get affordable batteries from China will be made more expensive, or will need to find new suppliers which can now charge higher prices since they don’t have to compete with the previously lowest-priced option.
And same with EVs as a whole – the existence of excellent small cars like the EX30 exerts downward price pressure on competing vehicles, which now won’t have to worry about that particular car (or any other affordable EVs which might make their way here) as competition.
And the net effect of that is lower EV adoption – which means Americans won’t get cleaner air as quickly as we would otherwise.
Meanwhile, while it may give a little breathing room for the American auto industry to catch up, it may also make them think they don’t need to work as hard to do so. American automakers already lobby to slow down the EV transition, so it’s clear they aren’t interested in moving as fast as they possibly can.
But most importantly, I don’t see how artificially raising the prices of EVs helps to meet climate goals. Climate change is the most important issue humanity has ever faced, and needs to be priority number one of every human on Earth. This decision does not do that.
But even though tariffs hurt the US economy, they are still popular. So this decision doesn’t happen in a vacuum – it happens with an important election just months away.
Of course, despite this being a bad move, there aren’t many other options. President Biden’s election competitor, Mr. Trump, also favors increased tariffs, though is less targeted in his approach.
Trump further favors torpedoing America’s manufacturing competitiveness by actively seeking to harm EV production. He recently asked oil companies for a billion dollars in bribes, promising to shut down incentives for American auto manufacturing if they give it to him, which would in fact hand even more of a lead to China.
So there is still a clear better choice for how to handle the issue of the EV trade – even if both seem committed to making some poor decisions on the way.
FTC: We use income earning auto affiliate links. More.
Renewables and nuclear provided 40.9% of the world’s power generation in 2024, passing the 40% mark for the first time since the 1940s, according to a new global energy think tank Ember report.
Renewables added a record 858 TWh in 2024, 49% more than the previous high in 2022. Solar was the largest contributor for the third year running, adding 474 TWh to reach a share of 6.9%. Solar was the fastest-growing power source (+29%) for the 20th year in a row.
Solar has doubled in just three years, providing more than 2,000 TWh of electricity in 2024. Wind generation also grew to 8.1% of global electricity, while hydro – the single largest renewable source – remained steady at 14% of global electricity.
“Solar power has become the engine of the global energy transition,” said Phil MacDonald, Ember’s managing director. “Paired with battery storage, solar is set to be an unstoppable force. As the fastest-growing and largest source of new electricity, it is critical in meeting the world’s ever-increasing demand for electricity.”
Ember’s sixth annual Global Electricity Review, published today, provides the first comprehensive overview of the global power system in 2024 based on country-level data. It’s published alongside the world’s first open dataset on electricity generation in 2024, covering 88 countries that account for 93% of global electricity demand, as well as historical data for 215 countries.
What drove the rising power demand
The analysis finds that fossil fuels also saw a small 1.4% increase in 2024 due to surging electricity demand, pushing global power sector emissions up 1.6% to an all-time high.
Heatwaves were the main driver of the rise in fossil generation, accounting for almost a fifth (+0.7%) of the increase in global electricity demand in 2024 (+4.0%), mainly through additional use of cooling. Without these temperature effects, fossil fuel generation would have risen by only 0.2%, as clean electricity generation met 96% of the demand growth not caused by hotter temperatures.
“Amid the noise, it’s essential to focus on the real signal,” continued MacDonald. “Hotter weather drove the fossil generation increase in 2024, but we’re very unlikely to see a similar jump in 2025.”
Aside from weather effects, the increasing use of electricity for AI, data centers, EVs, and heat pumps is already contributing to global demand growth. Combined, the growing use of these technologies accounted for a 0.7% increase in global electricity demand in 2024, double what they contributed five years ago.
Clean power will grow faster than demand
Ember’s report shows that clean generation growth is set to outpace faster-rising demand in the coming years, marking the start of a permanent decline in fossil fuel generation. The current expected growth in clean generation would be sufficient to meet a demand increase of 4.1% per year to 2030, which is above expectations for demand growth.
“The world is watching how technologies like AI and EVs will drive electricity demand,” said MacDonald. “It’s clear that booming solar and wind are comfortably set to deliver, and those expecting fossil fuel generation to keep rising will be disappointed.”
Beyond emerging technologies, the growth trajectories of the world’s largest emerging economies will play a crucial role in defining the global outlook. More than half of the increase in solar generation in 2024 was in China, with its clean generation growth meeting 81% of its demand increase in 2024. India’s solar capacity additions in 2024 doubled compared to 2023. These two countries are at the forefront of the drive to clean power and will help tip the balance toward a decline in fossil generation at a global level.
Professor Xunpeng Shi, president of the International Society for Energy Transition Studies (ISETS), said: “The future of the global power system is being shaped in Asia, with China and India at the heart of the energy transition. Their increasing reliance on renewables to power demand growth marks a shift that will redefine the global power sector and accelerate the decline of fossil fuels.”
Read more: Made-in-America solar just got a big win in Louisiana
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
The next-gen LEAF is almost here, and it’s looking better than ever. This isn’t the electric hatch you are used to seeing. Nissan’s new LEAF EV has more range, a fresh crossover design, and yes, it can finally charge up at Tesla Superchargers with an NACS port. With the official reveal just around the corner, someone already spotted the new LEAF at a Tesla charger in Canada.
Nissan is launching the new LEAF in the US and Canada
A little over a week ago, we finally got our first look at the third-generation LEAF. Nissan’s iconic electric hatch has grown into a “sleek and spacious family-friendly crossover.”
The US and Canada will be the first to see the reimagined LEAF later this year. It will join the Ariya in Nissan’s North American EV lineup as it looks to spark growth in one of its most important markets.
Based on the CMF-EV platform, the same one underpinning the Ariya, Nissan promises the new LEAF will have “significant range improvements.” Although no other details were revealed, Nissan’s vehicle programs chief, Francois Bailly, told TopGear.com that it’s expected to have WLTP driving range of up to 373 miles (600 km).
It will likely be lower on the EPA scale, but anything even close to 300 miles would be a major improvement over the current 212 EPA-estimated miles offered on the 2025 LEAF SV Plus.
The next-gen LEAF will also be Nissan’s first EV to feature an integrated NACS charging port. With its official debut later this year, the new model is out for testing and was just caught testing at a Tesla Supercharger in Canada.
If you didn’t know what vehicle it is, the LEAF is hardly recognizable. The new image from KindelAuto gives us a closer look at the new crossover design. It almost looks like a Tesla sitting in front of the charger.
The new LEAF is one of 10 new and refreshed Nissan vehicles set to launch in the US and Canada. It will arrive later this year, followed by the fourth-gen Rogue in 2026, which will be available as a PHEV for the first time.
Nissan also plans to build a new “adventure-focused SUV” at its Canton, Mississippi, plant in late 2027. The teaser shows what appears to be a rugged electric Xterra. We’ll have to wait for more details on that one.
Nissan will reveal additional info about the upcoming LEAF mid-year. Check back soon for more updates.
FTC: We use income earning auto affiliate links. More.
The Port of Barcelona launched the Ecocat Tres, a highly efficient, all-electric commuter ferry powered by Molabo’s ARIES i50 electric motors.
Ecocat Tres is the latest zero-emission ferry in Bus Nàutic’s growing electric fleet, providing clean transportation between the Drassanes and Llevant wharves. In just its first three months, the Bus Nàutic service logged over 125,000 sustainable trips. Operated by ALSA and backed by the Port of Barcelona, the initiative offers locals and visitors an eco-friendly way to travel, cutting down on road congestion and air pollution in the bustling city.
Built by Spanish shipbuilder Metaltec Naval, Ecocat Tres is a 15-meter aluminum catamaran that carries up to 84 passengers. It even includes a rooftop deck, offering extra seating and a breezy ride across the port. The ferry runs every 15 to 30 minutes for at least 12 hours each day, with the entire trip taking about 10 minutes.
Under the deck are two powerful 48V Molabo ARIES i50 motors, enabling the electric ferry to hit a top speed of 12 knots. Cruising at its regular operational speed of 5 knots, Ecocat Tres can run efficiently for up to 21 hours on a single charge, making it highly reliable for daily commuters.
Molabo’s motors have a low-voltage setup, which makes them safer to maintain compared to traditional high-voltage electric systems. Passengers also enjoy a smoother, quieter ride thanks to significantly reduced noise and vibrations onboard. Azimut Marine supplied the full propulsion and energy system, which includes two ARIES 50 kW electric drives, 36 batteries providing a total of 216 kWh, fast chargers, and integrated solar panels. Impressively, solar power alone can cover up to 40% of the ferry’s energy needs.
Ecocat Tres will cut around 90 tons of CO2 emissions each year, making a positive impact on Barcelona’s ambitious climate goals.
Port of Barcelona president José Antonio Carbonell said, “This 100% electric, zero-emission passenger ferry is helping us reshape mobility in the port and accelerate the decarbonization of our operations.”
To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway