Biden quadruples tariffs on Chinese EVs, up from 25% to 100%
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.
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Bojangles, the North Carolina-based chain known for its fried chicken and biscuits, is joining the growing list of fast food chains installing EV chargers in their parking lots.
The restaurant chain is working with Smart Big Box, Alyath EV, and Energy and Environmental Design Services to install turnkey EV charging stations at a “wide range” of its 800 restaurants, which are concentrated heavily in the southeast US. The rollout starts in late 2025, with most chargers expected to be available by sometime in 2026.
Each Bojangles location getting EV chargers will offer at least four ports. The stations will vary between Level 2 and DC fast chargers.
Bojangles CIO Richard Del Valle said, “Working with Alyath and Smart Big Box allows us to introduce a new convenience that aligns with evolving customer needs.”
It’s a smart move. The charging stations will let people plug in and power up, and they’re more likely to dine at Bojangles while they’re doing so. Plus, Bojangles will get a reputation for having charging stations, so EV drivers will be more inclined to head toward the restaurants as a reliable power source.
Cristiane Rosul, CEO of Alyath, said the partnership “not only benefits EV drivers but also positions Bojangles as a leader in the future of quick-service dining.”
Smart Big Box has contracted with Energy and Environmental Design Services as the exclusive installer and maintenance partner for all EV chargers.
Read more: Waffle House is getting DC fast chargers – and it’s a genius move
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Toyota’s electric SUV is now its cheapest vehicle to lease. After slashing lease prices again, the Toyota bZ4X is listed for lease at just $199 per month in some states. That’s even cheaper than a Corolla right now, even though it’s nearly double the price.
Toyota bZ4X is now cheaper to lease than a Corolla
The 2025 Toyota bZ4X already starts at $6,000 cheaper than the previous model year, but with a new promotion this month, it’s even more affordable.
Toyota is at it again, having cut lease prices once more this month following the Fourth of July holiday. The 2025 Toyota bZ4X XLE is now listed at just $199 per month for 36 months. With $3,999 due at signing, you’ll end up paying an effective cost of $310 per month.
The offer is $42 less than before the new promo, or about a 12% price cut. It’s hard enough to find any lease nowadays around $300, but for an electric SUV, it’s a pretty good deal.
According to online auto research firm CarsDirect, it’s even cheaper to lease a bZ4X now in some states than a Toyota Corolla. The 2025 Corolla LE Sedan is available for $229 for 36 months. With $2,999 due at signing, the effective monthly rate is $312, or $2 more than the bZ4X.
Although $2 might not seem like much in the grand scheme of things, it’s pretty significant, given that the bZ4X is $16,000 more expensive.
The 2025 Toyota bZ4X XLE has an MSRP of $38,465, compared to the Corolla LE Sedan, which starts at $22,325. That’s a $16,140 cost difference alone.
Toyota’s electric SUV is slightly longer than a RAV4 at 184.6″ in length, but it has a longer wheelbase, which opens up more interior space.
Toyota is also throwing in a free year of unlimited charging (at EV-go-operated public charging stations) for those who buy or lease a new 2025 bZ4X. You can also add a ChargePoint home charger to the cost.
Although the bZ4X is available for just $199 per month, the 2025 Hyundai IONIQ 5 is listed at $179 nationwide this month. With more range, style, and an NACS port for charging at Tesla Superchargers, the 2025 IONIQ 5 offer is hard to pass up right now.
| 2025 Toyota bZ4X trim | Starting Price (excluding $1,395 DPH fee) |
Price reduction (vs 2024MY) |
Range (mi) |
| XLE FWD | $37,070 | -$6,000 | 252 |
| XLE AWD | $39,150 | -$6,000 | 228 |
| Limited FWD | $41,800 | -$5,380 | 236 |
| Limited AWD | $43,880 | -$5,380 | 222 |
| Nightshade | $40,420 | N/A | 222 |
Like many carmakers, Toyota is currently offering significant incentives on electric vehicles, with the federal tax credit set to expire at the end of September. Accordingly, Toyota’s promotion ends on September 30. Although the bZ4X doesn’t qualify for the credit through purchase, Toyota is passing it on through leasing.
In some areas, like LA, Toyota is currently offering $12,000 off bZ4X leases. With the loss of the tax credit, the savings would drop to just $4,500, which would add over $100 a month to the lease price.
Looking to take advantage of the savings while they are still here? You can use our link to find deals on the 2025 Toyota bZ4X in your area today.
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Transport Canada has finished its investigation into Tesla’s questionable filing of $43 million worth of EV incentives in a single day, finding that the claims did indeed represent cars sold before the deadline to file for incentives – still raising questions about disorganization within Tesla.
To recap, Canada suddenly sunsetted its electric vehicle incentives back in January, as the program ran out of money. It caught a lot of EV dealers by surprise, and there was a sudden rush to sell cars and to file for incentives, given that the end of the program was announced with just three days notice.
One of these dealerships that showed a rush was a single Tesla dealership in Quebec, which recorded 4,000 rebate requests in a single weekend, an impossible number at the relatively small location. Other Tesla locations also filed for suspiciously high numbers of incentive claims on the same weekend.
This raised alarm bells, and other Canadian auto dealers pointed it out to Transport Canada, with Huw WIlliams, head of the Canadian Auto Dealers Association (CADA) claiming that Tesla “gamed the system” to hog an illegitimate number of incentive claims out of the limited money left. The total amount was $43 million, which was more than half of the amount left in the Canadian government’s coffers.
Even accounting for Tesla delivery pushes, and for increased sales as the credit rapidly sunset, these numbers did not seem possible.
This – perhaps combined with Tesla’s unpopular position in Canada at the time given CEO Elon Musk’s participation in a US government which was attacking Canada’s sovereignty at the time – led to Transport Canada announcing an investigation into Tesla’s incentive claims (Canadian Transport Minister Chrystia Freeland even said at the time that future Canadian ZEV incentives should exclude Tesla until the US’ “illegitimate and illegal” tariffs were lifted).
Tesla responded to the investigation in a typically standoffish manner, claiming in a letter that it was “shocked” to hear about the investigation, threatening legal action if payments weren’t resumed, and blaming Transport Canada for causing Tesla’s negative public perception and exposing Tesla’s Canadian employees to harassment (the letter did not, however, mention anything about CEO Musk’s government activities, or his recent actions attempting to spread white supremacy around the globe, and how those are much more responsible for negative public perception of the company).
Well now, the result of that investigation is back, and Freeland said on Friday that Tesla’s claims “were determined to legitimately represent cars sold before January 12.”
Transport Canada also pledged to CADA that all cars delivered before January 12 will have their incentive claims fulfilled, regardless of the program’s budget. CADA estimates it’s owed around $11 million in past-due claims, and Williams still wonders how Tesla knew to file those claims so suddenly.
Electrek’s Take
Questions still remain about this incentive. As pointed out by the Canadian Press, it’s still not clear whether Tesla’s incentive claims were for cars sold on that weekend, or for cars sold prior to that weekend and delivered all in a lump.
Given the physical limitations of the locations involved, it’s likely the latter. Which raises a different kind of alarm bell: that of disorganization within Tesla, as I pointed out as my main concern over this situation in a previous article.
I just don’t see how Tesla Canada can justify leaving tens of millions of dollars on the table for potentially several months, when all it took was the filing of some pieces of paper for them to get it. That’s capital that Tesla could have used to do business, and letting it sit in someone else’s bank account doesn’t benefit Tesla at all.
Now, disorganization is nothing new for Tesla, but businesses usually don’t like leaving money laying around for no reason. And Tesla, with its focus on quarterly results and end-of-quarter pushes, surely would have enjoyed having that extra cash in December, the end of a fiscal quarter/year, rather than the beginning of January when they filed for these incentives.
So regardless of the now proven legitimacy of these claims, this aspect should be cause for some amount of concern. It’s a reflection of a longtime problem in Tesla, where things tend to fall through the cracks until there’s some sort of emergency, and then it’s all-hands-on-deck from whoever happens to be closest to the problem at the time. But this has been an issue within Tesla for so long that it’s hard to see it being fixed at this point – and certainly not under its longtime CEO who seems far more interested in using Tesla to bail out his private companies or turning Twitter into “MechaHitler” than on making actual good decisions for Tesla.
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