Tariffs on EVs could hinder China’s dominance

Elon Musk can breathe easy: The cheap Chinese electric vehicles dubbed “Tesla killers” won’t have much chance to make inroads in the United States. That’s because President Joe Biden announced steep new tariffs on Chinese EVs, NPR said, in a bid to protect American carmakers. “Folks, look: I’m determined that the future of electric vehicles will be made in America, by union workers, period,” Biden said. 

What’s the threat? BYD, the increasingly dominant Chinese carmaker, has a new model called the Seagull that sells for around $12,000. Those low prices “could shake up the global auto industry in ways not seen since Japanese makers exploded on the scene during the oil crises of the 1970s,” said The Associated Press. American EVs are much more expensive, thanks both to higher U.S. labor costs and the Chinese head start on battery technology. The tariffs might give American carmakers a chance to catch up. “Don’t take anything for granted,” said Ford CEO Jim Farley.