Electric Car Fight Heats Up Between US and China

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BYD teases the latest electric car SUV Denza N7 (Credits: ArenaEV)

Two big things happened in the electric vehicle world on the same day. First, a Chinese electric car company called Zeekr went public on the New York Stock Exchange. Then, news came out that the US government might put much higher taxes on electric cars made in China. This might just be a coincidence, but it feels like the US and China are now in a fight over electric cars.

The US government is thinking about raising the taxes on electric cars from China by a lot, from 25% to 100%! This would make Chinese electric cars much more expensive to buy in the US. There are a few reasons why the US might be doing this.

BYD’s U7 Electric Car of China

China has been working hard to become the leader in electric cars. They’ve built a lot of factories to make electric car batteries and other parts. They’ve also given companies a lot of money to make and buy electric cars. Because of this, China is now one of the biggest makers of electric cars in the world.

Some people might think that Chinese electric cars are cheap and not very good. But that’s not really true anymore. China has learned how to make good electric cars, with some that are very affordable and others that are luxurious.

These cars are a threat to electric car companies in the US and Europe because many American and European electric cars are still expensive and not very advanced. That’s why the US government might be raising taxes on Chinese electric cars, and why Europe might be doing the same thing soon.

Some electric cars sold in the US by American or European brands are actually made in China. This includes some Lincolns, Buicks, and Polestar cars. Volvo is also planning to make an electric car called the EX30 in China and sell it in the US for around $35,000. But with the new tariffs, this car might become more expensive. We don’t know yet how the tariffs will affect Volvo’s plans.

The new tariffs will also apply to other things made in China, like solar panels and batteries. This is happening during an election year in the US, and both Democrats and Republicans are worried about cheap electric cars from China hurting American car companies.

Tesla’s Model Y of USA

The US government is trying to help American electric car companies by giving tax breaks to people who buy electric cars made in the US. They are also giving money to companies to build electric car batteries and factories in the US. These efforts will take time to work, and the tariffs might just be a temporary solution.

In the end, this fight between the US and China over electric cars is like a new Cold War, but this time it’s between trading partners. It’s going to be complicated to solve.


By Annie Linardos

I'm a journalist student and completed my masters in Journalism and Mass Communication. With a strong track record as an intern at Mathrubhumi News and The New Indian Express as a reporter and content writer, I'm creative, motivated, and have a keen eye for the truth and attempting to use the expertise and talents to contribute to the emerging field of journalism. I have also been working as a freelance writer and have the capability of producing interesting and bold articles.

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