Musk opposes US tariffs on Chinese electric cars
Elon Musk, the CEO of Tesla, expressed his opposition to the recently imposed US tariffs on Chinese electric vehicles (EVs), following President Joe Biden’s decision to increase levies on such imports from China. Speaking at a technology conference in Paris via video link, Musk stated that neither Tesla nor himself had requested these tariffs.
This stance marks a departure from his earlier warning in January, where he cautioned that Chinese car manufacturers could dominate competitors from other nations if trade barriers were lifted.
The White House’s announcement of new measures, including a 100% border tariff on EVs from China, was justified as a response to unfair policies and aimed at safeguarding US jobs. Musk, however, revealed his surprise at the announcement, criticizing any actions that hinder free exchange or distort market dynamics.
Highlighting Tesla’s successful competition in China’s market without tariffs or preferential support, Musk advocated for the elimination of tariffs altogether. Meanwhile, President Biden has continued some tariffs on China initiated by his predecessor while ramping up trade pressure on Beijing, particularly in critical sectors like electric vehicles, batteries, computer chips, and medical supplies.
In response to the tariff hikes, China expressed its opposition and threatened retaliatory measures. Additionally, this week, China initiated an anti-dumping investigation into imports of a commonly used plastic from the US, EU, Taiwan, and Japan.
The announcement from the Ministry of Commerce that it will investigate imports of polyoxymethylene copolymer – which is used in electronics and cars – was seen as a signal that China will hit back in its trade disputes with the US and Europe.
Also this week, China signalled it could hit cars with large engines imported from the EU and US with tariffs of as much as 25%.
The China Chamber of Commerce to the EU said it had been told about the potential move by what it called “insiders”.
The European Commission (EC), which oversees the EU’s trade policies, has given itself a 4 July deadline to decide whether to impose measures against imports of Chinese-made EVs.
