Tesla CEO Elon Musk has voiced his opposition to the new US tariffs on Chinese electric vehicles (EVs), just days after President Joe Biden significantly increased these levies. Speaking via video link at a technology conference in Paris, Musk stated, “Neither Tesla nor I asked for these tariffs.”
Musk’s remarks diverge from his previous warnings in January when he suggested that Chinese car manufacturers would “demolish” international competitors if no trade barriers existed.
Last week, the White House announced new measures, including a 100% tariff on Chinese EVs, aimed at countering what it described as unfair policies and protecting American jobs. However, Musk expressed his disapproval of the tariffs, saying, “I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good.” He added that Tesla competes effectively in the Chinese market without the need for tariffs or special support, and he advocates for “no tariffs.”
President Biden has continued many of the tariffs on China that were implemented by his predecessor, Donald Trump, while also increasing trade pressure on Beijing. Biden recently stated his commitment to preventing China from “unfairly controlling the market” for EVs and other critical goods, such as batteries, computer chips, and medical supplies.
In response to the US tariff hikes, China has announced it will take retaliatory measures. This week, China initiated an anti-dumping investigation into imports of polyoxymethylene copolymer, a widely used plastic, from the US, EU, Taiwan, and Japan. This move by China’s Ministry of Commerce is perceived as a counteraction in the ongoing trade disputes with the US and Europe.
Additionally, China hinted at the possibility of imposing tariffs of up to 25% on cars with large engines imported from the EU and US. The China Chamber of Commerce to the EU mentioned that it had received information about this potential move from “insiders.”
The European Commission (EC), responsible for the EU’s trade policies, has set a deadline of July 4th to decide whether to implement measures against imports of Chinese-made EVs. This decision is part of the broader context of escalating trade tensions between China, the US, and Europe.
