Tesla boss Elon Musk is not happy with the import tariffs that the US government recently imposed on Chinese electric cars. “Neither Tesla nor I asked for these tariffs, in fact I was surprised when they were announced,” Musk said Thursday.
“Things that hinder the free exchange of goods or distort the market are not good,” he added Thursday during a video conference at Viva Technology in Paris. “Tesla is doing quite well in the Chinese market with no tariffs and no support,” Musk said. “I am in favor of not raising rates.” However, in January he warned that without trade barriers, Chinese carmakers would “demolish” their competitors, which was seen as an endorsement of the policies of US President Joe Biden, who followed suit. changing in the footsteps of his predecessor Donald Trump was understood.
China also brings higher taxes into play
Last week, Washington quadrupled tariffs on Chinese electric cars. Biden justified this with unfair trade practices by China that threatened the American economy. Other goods from China are also affected by the new tariffs. According to the US government, the measures affect goods worth 18 billion dollars (about 16 billion euros).
Countermeasures from Beijing are likely to follow soon. An expert from a state research institute spoke of a 25 percent import tax that would apply to Western combustion vehicles with larger engines. This will probably mainly affect the German car manufacturers BMW and Mercedes.
Unanimous criticism in the car industry
No wonder that besides Tesla, other car manufacturers also reject the rate increase. Stellantis boss Carlos Tavares described tariffs as a “bigger pitfall” in an interview with Reuters on Wednesday. They did not stop Western car manufacturers from adapting to competition from China, but simply drove up inflation. Tavares spoke of a “Darwinian period” in which the industry is currently stuck. The price war with Chinese rivals will be “very tough”. “It won’t be easy for the dealers. It won’t be easy for suppliers. It will not be easy for the car manufacturers themselves. Electric car manufacturers from China currently have a 30 percent cost advantage.
VW technical director: European ‘master plan’ is missing
Volkswagen Chief Technology Officer Thomas Schmall said a “master plan” is now needed in Europe. The US has taken a good step with the Inflation Reduction Act, and there are also clear plans for industry and politics in China. Something similar is missing in Europe. “The door is closing,” he said.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
