Biden prepares to put tariffs on Chinese EVs

JOE BIDEN is poised to quadruple trade tariffs on Chinese electric vehicles (EVs) as the US ramps up tensions with Beijing.

The move by the US president comes amid fresh measures to tax green energy technologies from China, such as batteries and solar panels, as well as critical minerals and semiconductors.

It follows a year-long review of tariffs previously imposed under Donald Trump and comes as concern grows in Washington about a flood of Chinese green energy exports to the West.

Many of the tariffs are expected to be held at the same level but the increase in taxation of Chinese EVs shows to what extent the White House views them as a threat. Mr Biden warned in March that the technology-heavy cars pose a risk to US security as they could potentially be used to spy on both infrastructure and citizens. He has also vowed “to do right by auto workers and middle-class families that depend on the auto industry for jobs”, ahead of November’s presidential election.

Against that backdrop, Mr Biden is preparing to raise import tariffs on Chinese EVs from 25pc to 100pc, according to The Wall Street Journal.

The measure is likely to make buying China-made EVs prohibitively expensive, while also deterring Chinese brands from importing components such as batteries before assembling cars in the US. It is also likely to further inflame US-China trade tensions, which are already strained.

The White House declined to comment yesterday, while the Chinese foreign ministry suggested Beijing could retaliate to any such decision.

A spokesman for the ministry said: “China will take all necessary measures to defend its rights and interests.”

The US has in recent years taken an increasingly tough stance against what it says is unfair competition coming from China, where the communist government has saturated key industries with state support.

There are also fears that this has led to Chinese overproduction of goods, which domestic companies are then seeking to offload into global markets at rock-bottom prices.

Separately, Jaguar Land Rover is racing to complete a £356m factory upgrade as the West Midlands carmaker prepares to launch the first all-electric Range Rover. It said yesterday that it was busy installing new equipment to make components for its forthcoming generation of electric vehicles (EVs) at its factory in Wolverhampton.

That is in addition to £1.4bn JLR is spending on assembly lines for the new electric Range Rover and Jaguar cars at both Solihull and Halewood,.

JLR expects to launch an electrified Range Rover before the end of the year and have the first cars delivered to drivers by 2025.