Tesla CEO Elon Musk has voiced opposition to the US tariffs on Chinese electric vehicles (EVs), following President Joe Biden’s recent decision to significantly increase levies on these imports. “Neither Tesla nor I asked for these tariffs,” Musk stated during a technology conference in Paris via video link. Musk’s current stance contrasts with his January warning that Chinese car manufacturers would dominate global competitors if there were no trade barriers. Last week, the White House announced new measures, including a 100% tariff on EVs from China, as a response to what it described as unfair trade practices and a move to protect American jobs.
“In fact, I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good,” Musk said on Thursday. “Tesla competes quite well in the market in China with no tariffs and no differential support. I’m in favor of no tariffs,” he added. President Biden has upheld several tariffs on China that were initially imposed by former President Donald Trump, while also increasing trade pressures on Beijing. Last week, Biden emphasized his commitment to preventing China from “unfairly controlling the market” for EVs and other essential goods, including batteries, computer chips, and basic medical supplies.
China has expressed its opposition to the tariff increases and has indicated it will implement retaliatory measures. This week, China initiated an anti-dumping investigation into imports of a commonly used plastic from the US, EU, Taiwan, and Japan. The Ministry of Commerce announced an investigation into imports of polyoxymethylene copolymer, a material used in electronics and automobiles, signaling a potential response to ongoing trade disputes with the US and Europe.
Additionally, China has suggested it may impose tariffs of up to 25% on cars with large engines imported from the EU and the US. The China Chamber of Commerce to the EU reported receiving information about this potential move from “insiders.” The European Commission, responsible for overseeing the EU’s trade policies, has set a deadline of July 4 to decide on measures against imports of Chinese-made EVs.
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