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Updated December 21st, 2023 at 11:25 IST

US weighs rise in tariffs on Chinese EVs: Report

Chinese automobiles currently face a 25 per cent levy introduced during the administration of former President Donald Trump and extended by his successor.

Electric vehicles
Representative Image | Image:Shutterstock
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The Biden administration in the United States is discussing raising tariffs on some Chinese goods, including electric vehicles (EVs), the Wall Street Journal said on Wednesday, citing people familiar with the matter.

China's vehicle exports have grown in recent years, fuelled by overcapacity and slowing domestic demand in the world's biggest auto market, and are expected to rise 25 per cent next year to 5.3 million units, China Merchants Bank International says.

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The Journal report follows a request to the administration by a bipartisan group of US lawmakers last month to hike tariffs on Chinese-made vehicles and investigate ways to prevent Chinese firms from exporting to the United States from Mexico.

Chinese automobiles currently face a 25 per cent levy introduced during the administration of former President Donald Trump and extended by his successor.

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The US government is debating Trump-era duties on roughly $300 billion of Chinese goods, aiming for early next year to wrap up a long-running review of the tariffs, the paper added.

The Biden administration is also considering lowering tariffs on some Chinese consumer products that officials do not see as strategically important, in addition to the potential increases on clean-energy products, the paper said.

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Foreign automakers including Tesla also use China as a major export hub.

Lawmakers have said earlier that US automakers are exporting Chinese-made vehicles to the United States, a sign that current import tariffs are insufficient.

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The office of the US Trade Representative and the National Security Council did not immediately respond to a Reuters request for comment. 

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Published December 21st, 2023 at 11:25 IST

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