QUADRUPLE TAX – Possible sting coming for cars Chinese electric cars in the United States: President Joe Biden’s administration (in the picture) would in fact be ready to hit battery-powered vehicles coming from the country of the Dragon with a new tax rate. According to Wall Street Journalthis will quadruple, passing from 25 to 100% as early as next week. A new tax should also affect cars built abroad and imported into the USA, in this case we are talking about an increase of “only” 2.5%. The announcement of the measure is expected tomorrow, Tuesday 14 May, and represents one of Biden’s most important moves in the commercial “war”. against China. Within the measures there should also be other levies, which will focus not only on electric vehicles but also on batteries and solar cells.
FAIR COMPETITION – For now the White House is not commenting on the information leak. However, a month ago, Joe Biden stated that the US opposes “unfair economic practices and industrial overcapacity: I’m looking for competition, but fair competition.” In contrast, the Chinese Foreign Ministry stated that the tariffs imposed by the previous administration, led by Donald Trump, had already “severely disrupted” the economic exchanges and trade between the two superpowers. He also called on the US government to lift restrictions on Chinese products, adding that Beijing will also take measures to defend their rights and interests. The new measures, if they become effective, will push “investors to stop at potentially exposed securities”, analyzes Xin-Yao Ng, investment director of Abrdn, underlining however that many green technology companies – such as the battery giant CATL – have already alimited exposure in the United States: “Everyone knows it’s a risk.”
ELECTION BATTLE – I new duties they would therefore have a minimal impact on Chinese companies, considering that the main manufacturers of electric vehicles worldwide have stayed away from the Stars and Stripes market precisely because of the rates Already penalizing. All this fits into the electoral battle between Biden and Trump, both committed to appearing tough and pure towards China ahead of the November elections. Biden has signed a bill which is intended to bring the Chinese social network TikTok to divest or completely abandon the American market. At the same time, Trump promised to increase duties if re-elected, announcing a 60% tax on all Chinese imports.
