Washington: The United States is gearing up to impose a hefty 100% tariff on electric cars brought in from China, according to a report released on May 11. If this action is taken, it would mark a significant escalation in the ongoing trade dispute between the US and China, potentially prompting retaliatory tariffs from the Chinese government led by Xi Jinping.
The proposed tariff increase represents a staggering four-fold rise from the current 25%. This decision follows expressions of frustration from senior US officials regarding China’s excessive production of electric vehicles, which is viewed as a threat to American jobs and national security.
Both US President Joe Biden and his Republican predecessor, Donald Trump, have advocated for a tough stance against China in the past. With the US Presidential Elections looming in November, this move could offer Democrats a strong platform to showcase their anti-China stance.
The potential imposition of a 100% tariff on Chinese electric vehicles underscores the intensifying competition between the world’s two largest economies in the realm of advanced technology and green energy. The US has been ramping up efforts to bolster its domestic electric vehicle industry, viewing it as crucial for economic growth and reducing dependence on foreign imports. However, the move risks further straining diplomatic relations between Washington and Beijing, already fraught with tensions over issues ranging from trade imbalances to human rights concerns.
