Biden To Drastically Increase Tariffs On Chinese EVs: Report

This year has featured quite a bit of drama as it relates to electric vehicles, with a fair amount of it coming from Dearborn. As Ford Authority previously reported, the automaker has officially scaled back its EV pivot in favor of a more balanced approach. Additionally, it also revealed that it is currently developing a low-cost EV that will allegedly cost $25k. That upcoming vehicle is based on a platform meant to counteract Chinese EVs that may soon be sold in the United States. That said, according to a new report from the Wall Street Journal, the Biden administration is planning on increasing the tariffs imposed on imported Chinese EVs by a drastic amount, with details potentially being revealed this week. Additionally, a Ford Motor Company vehicle already in production could be impacted by the new round of tariffs as well.

BYD Seagull

According to the publication, Biden will increase the tariffs on Chinese EVs from 25 percent to 100 percent. The administration is also planning to raise tariffs on critical minerals and batteries sourced from China. As it relates to Ford, those tariffs will likely impact the company’s ability to competitively offer electric vehicles in its home market, as the Ford Mustang Mach-E standard range battery is sourced from China, with CATL as the supplier. An increase in critical mineral tariffs could also impact the automaker’s other electric vehicles too.

The new Biden administration plan will arrive at a time where Ford executives have been sounding the alarm on the threat posed by Chinese EVs. Ford CEO Jim Farley stated that he was more concerned about the BYD Seagull than any emissions or EV requirements from the federal government. In fact, the upcoming low cost EV platform is specifically envisioned as a means to combat vehicles from Chinese manufacturers, and the Blue Oval will likely use it to compete in the Chinese home market as well. Farley made the push to develop the platform after he visited China in 2023.

While it is currently unclear if gasoline vehicles will be impacted by the increased tariff, the importation of the Lincoln Nautilus possibly hangs in the balance. The current generation model is imported from China, and an increase to a 100 percent tariff would likely make its sale in North America impossible. The redesigned Nautilus first arrived at U.S. dealers in January 2024.

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