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China likely to retaliate against US tariffs on electric vehicles: Dan Ives

  • The Biden administration is set to increase tariffs on Chinese electric vehicles from 25% to around 100%.
  • Wedbush’s Dan Ives told Bloomberg on Friday that China will most likely retaliate against the move.
  • Ives said growing competition from cheap Chinese electric vehicles would pose risks to the U.S. domestic electric vehicle market.

China is likely to retaliate against the decision by President Joe Biden’s administration to impose new tariffs on electric vehicles from China, said Dan Ives, an analyst at Wedbush.

The Wall Street Journal reported Friday that the White House was preparing to increase tariffs on Chinese electric vehicles from about 25% to about 100%, as well as an additional 2.5% duty on all cars imported into the United States. The tariffs will also affect other sectors, including solar products and minerals, according to the Journal.

“Retaliation could certainly happen. This Game of Thrones continues to play out,” Ives said in an interview with Bloomberg on Friday, noting that increased competition from cheap electric vehicles coming to the U.S. market would be difficult for Tesla to handle .

China’s top electric vehicle producer, BYD, has avoided the U.S. market due to trade barriers, but its ambition to sell its cars in the United States is growing.

“When you look at BYD, when you look at Nio and others coming to the United States, it’s a major competition issue,” he said. Ives also emphasized that Tesla would not only be in the crosshairs of new competition. Traditional automakers would also suffer given their significant investments in electric vehicles, so the tariffs would protect Detroit automakers as well as Tesla.

businessinsider

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