Chinese electric cars remain cheaper than American cars despite being subject to a 100% tariff.

Among the top 20 best-selling car brands in China in the first half of 2024, BYD maintained its leading position with 1.607 million vehicles sold - Photo: REUTERS

Even if the Biden administration imposes heavy tariffs on electric vehicles imported from China, some models from the country of over a billion people will still be sold at lower prices than American vehicles, highlighting the profound challenges facing the US government 's electric vehicle policy, Nikkei Asia reported on September 15.

Previously, on September 13th, the US announced tariffs of up to 100% on electric vehicles from China. This policy will take effect from September 27th.

The findings follow a four-year review conducted by the U.S. Trade Representative (USTR) into unfair trade practices.

It is known that the number of cars imported from China to the US is very small, so this tariff measure is mainly a precautionary measure and aims to buy time for the US supply chain to catch up with China.

"China's industrial policies targeting the electric vehicle market could threaten federal investments in this sector," a USTR representative stated on September 13.

Despite the Biden administration's efforts to encourage people to switch to electric vehicles with government subsidies, China remains the leader in both electric vehicle production and consumption after decades of effort.

Data from market research firm MarkLines shows that in July, electric vehicles accounted for more than 10% of total car sales in the US. In China, this figure was around 50% – higher than the global average of about 20%.

It's an undeniable fact that the US electric vehicle market lacks two crucial things: electric vehicle charging infrastructure and affordable models.

Meanwhile, major Chinese automakers like BYD are able to leverage their extensive domestic supply chains to compete in a crowded market, offering electric vehicle models priced at around $25,000 or even less.

In the US, even leading electric vehicle manufacturers like Tesla don't have any models priced under $30,000. Electric cars in the US are always more expensive than gasoline-powered models.

Joe McCabe, CEO of the US research firm AutoForecast Solutions, said that BYD's cheapest electric car currently sells for $12,000. Therefore, even with a 100% tax, BYD could still offer the cheapest electric car on the market, under $25,000.

Prior to the new tariffs being implemented, on September 14, the Chinese Ministry of Commerce announced that "China will take necessary measures to resolutely protect the interests of Chinese companies."

The Commerce Department asserts that tariffs will not solve the problems of the US trade deficit and industrial competitiveness, but will only negatively impact global supply chains.

Source: https://tuoitre.vn/xe-dien-trung-quoc-van-re-hon-xe-my-du-bi-ap-thue-100-2024091517355705.htm