US tackles Chinese cars with high import tariffs

The White House recently announced that the U.S. government will impose higher tariffs on a number of goods manufactured from China, including electric cars, chips, batteries, steel and key minerals. The decision quadrupled the import duty on electric cars from China to 100%. As a result, these cars can no longer be sold at dump prices in the US market, thus losing significant commercial power.

According to the US government, these measures encourage China to engage in unfair trade practices, particularly in relation to technology transfer, intellectual property and innovation.

But what are Europe’s plans?

Apart from the US, the EU has also intensified its campaign against ‘unfair’ Chinese trade and economic practices. Western countries argue that China is using its industrial overcapacity to fuel its own growth by flooding global markets with cheap goods such as electric cars and steel. The EU is threatening new tariffs on electric cars from China, accusing Beijing of providing illegal government support to the sector to artificially lower prices.

How is China responding to these developments?

China will oppose any unilateral tariff hike, the Chinese Foreign Ministry said. According to the ministry, these measures are in violation of World Trade Organization (WTO) rules. Beijing says it is committed to taking all necessary measures to protect its legitimate rights and interests.