The recently announced tariffs on Chinese goods, including a 100% tariff on electric vehicles, mark a new phase of what will soon be a full-blown economic war. Many argue that raising tariffs on Chinese EVs won't change much because very few were imported into the US anyway. However, they will cause more problems down the road, including for American carmakers and the Americans. But they are not only necessary but inevitable.
It's election year, and presidential candidates pull all the stops to ensure victory. What President Trump started during his term at the White House is now pushed to the limits by the Biden Administration. A 100% tariff on electric vehicles is an effective way to ensure no Chinese-made electric car will be sold in the United States.
However, the current 25% tariffs were just as effective, with very few Chinese EVs reaching the US shores. From this point of view, the new tariffs are more of a statement than a tool. However, they will start a chain of events that might lead to a world far different from what we know today. Not only because China will want to respond in kind, blocking American companies where it hurts them the most. But also because the tariffs will hurt American carmakers in the long term, and the American people will pay the bill.
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