Elon Musk, founder, CEO, and chief engineer of SpaceX, CEO of Tesla, CTO and chairman of Twitter, Co-founder of Neuralink and OpenAI, at VIVA Technology (Vivatech)

Autos

Who’s Right On Chinese EV Tariffs: Musk Or Biden?

Author: Max McDee May 27, 2024

The U.S. government has shocked the automotive markets with 102% tariffs on Chinese electric vehicles. The reason behind such a steep hike is simple – protecting American jobs and the auto industry from unfair competition. The idea is to give companies such as Ford with its F-150 Lightning and GM with its Chevy Equinox EV a chance to compete for customers. It turns out that Elon Musk isn’t so sure about the whole tariff thing.

Musk Performs A Turnaround

Elon Musk, the last person to shy away from stirring controversy, spoke recently at the Viva Technology conference in Paris, where he proclaimed that “Things that inhibit freedom of exchange or distort the market are not good.” These are wise words, no doubt. But the real head-scratcher is that only six months ago, Musk was the one advising the tariffs on Chinese vehicles. He said, “If there are no trade barriers established, they will pretty much demolish most other car companies in the world.”

While tariffs might be a good idea to stop the flood of cheap Chinese EVs, they might also backfire. On the one hand, the tariffs are buying precious time for American automakers to get their EV game in order, especially since the majority of them are losing money on every EV they make. The problem is, though, that tariffs stifle progress and don’t encourage innovation.

The Tariff Tango

Joe Biden Portrait — Image Credit: WikiCommons.

The Biden administration isn’t stopping at electric cars. It is slapping tariffs on steel, aluminum, semiconductors, batteries, and battery components — a full-on tariff assault. China isn’t exactly thrilled about it, and it is already preparing its own response. The American auto industry will be at the receiving end of it.

Are these tariffs then a good idea or not? The truth is – nobody really knows for sure. It’s a complex issue with an equal number of benefits and drawbacks. Musk has got a point when he says tariffs can distort the market. There’s no argument that the American automakers need time to get their act together. It is a classic case of short-term gain versus long-term pain. Which side comes up on top? We won’t know the answer to that for a while.

Author: Max McDee

Title: Author

Expertise: cars, motorcycles, airplanes, boats

Bio:

Max is a gearhead through and through. With a wrench in one hand and a pen in the other, Max has spent the past thirty years building and racing some of the most impressive vehicles you’ll ever lay your eyes on. Be it cars, motorcycles, or boats, Max has a way of taking raw mechanical power and turning it into a work of art. He’s not just a talented engineer, either – he’s a true industry insider, with a wealth of knowledge and a love for a good story.

Autos

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Share on X (Twitter) Share on Facebook Share on Pinterest Share on Reddit <use href="#<svg width="1em" height="1em" viewBox="0 0 32 32" class="scriptlesssocialsharing__icon flipboard" fill="currentcolor" aria-hidden="true" focusable="false" role="img"> <title>flipboard</title> <path d="M24.997 13.001h-5.998v5.998h-5.998v5.998h-5.998v-17.995h17.995zM1.004 1.004v29.991h29.991v-29.991z"></path> </svg>" xlink:href="# flipboard “> Share on Flip itThe U.S. government has shocked the automotive markets with 102% tariffs on Chinese electric vehicles. The…

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Autos

Who’s Right On Chinese EV Tariffs: Musk Or Biden?

Musk Performs A Turnaround

The Tariff Tango

Author: Max McDee

Title: Author

Expertise: cars, motorcycles, airplanes, boats

Bio:

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Musk Performs A Turnaround

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Author: Max McDee

Title: Author

Expertise: cars, motorcycles, airplanes, boats

Bio:

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