The Biden administration recently said they would put a 102% tax on electric cars from China. They hope this will help American workers keep their jobs and protect the US car industry from unfair trading. It should also help companies like Ford and General Motors.
These tariffs aren’t just for electric cars. They also apply to things like steel, aluminum, and batteries. China is not happy about this, but the US government wants to protect American businesses.
Elon Musk, the CEO of Tesla, thinks these tariffs might cause problems. He says that blocking trade or changing how markets work is not good. He thinks it’s better to have no tariffs at all.
Musk’s opinion on tariffs has changed over time. Before, he said that if there were no tariffs, Chinese car companies would beat everyone else. Now, he’s against tariffs because they might hurt American car companies in the long run.
Stephanie Brinley from S&P Global Mobility says that tariffs can give American car companies time to figure out how to make electric cars profitable. But without competition from China, it’s hard to say how fast the industry will change.
In the end, tariffs can give car companies time to adjust, but they might also slow down innovation. Automakers need to find ways to make electric cars profitable, even without competition from China.
