According to reports, the administration of President Joe Biden will increase Chinese EV tariffs to 102.5 percent on Tuesday, when an announcement will be made.
The news service Bloomberg reports that President Joe Biden is planning to propose a steep hike in taxes on Chinese imports, with an emphasis on EVs and associated industries.
U.S. auto companies responded to the move, with Ford (NYSE: F), Tesla (NASDAQ: TSLA), and General Motors (NYSE: GM) all posting rises throughout the trading session today, according to former president Donald Trump.
The new policies allow tariffs on electric vehicles made in China to go from 27.5% to 102.5 %. While the exact percentages may differ, tariff increases are coming to other industries as well, such as solar cells, steel, aluminum, batteries, and solar cells. The Biden administration has justified these measures by saying they are protecting American workers and the American market from Chinese subsidies.
The former president recently spoke out against Biden’s tariff hikes during a campaign event, saying that they should have been put in place far earlier.
Additionally, he brought up a possible USMCA loophole involving Chinese automakers in Mexico as a means to avoid US tariffs.
U.S. car stocks rose sharply after the announcement. Although Tesla Inc.’s performance so far this year has been disappointing—down 29.91%—the stock price increased 3.27% to $173.99. The market capitalization of Tesla is still rather high at over $555.654 billion, even if it has had some recent difficulties.
The stock price of Ford Motor Company rose 3.06% to $12.36, making it the most successful company of the year so far, up 5.54%. Because of changes in trade rules, the business has been reorganizing its leadership and putting more effort into developing a wider range of electric vehicles.
The stock price of General Motors Company reached $45.90, a rise of 3.42%. With a 28.15% growth thus far this year, the company’s performance has been quite good. The Chevy Malibu is one of many classic models that GM plans to stop making as part of its goal to shift focus to electric cars, which may do better in the current tariff climate.
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