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New U.S. tariffs on Chinese EVs, batteries, solar cells could raise consumer prices

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Here's what new tariffs on Chinese electric vehicles and batteries, solar cells, medical equipment and other goods, intended to protect U.S. jobs and manufacturers, could do to U.S. consumers in the short term.

WASHINGTON — New tariffs on Chinese electric vehicles and batteries, solar cells, medical equipment and other goods are intended to protect U.S. jobs and manufacturers. They could raise prices on certain specific items, experts say, though a broad inflationary impact is unlikely in the short term.

Why the new tariffs? President Joe Biden said Chinese government subsidies for EVs and other consumer goods ensure that Chinese companies don’t have to turn a profit, giving them an unfair advantage in global trade. There are currently very few EVs from China in the U.S., but the Biden administration and U.S. automakers worry that low-priced, heavily subsidized EVs could soon flood the U.S. market. China’s global exports of EVs grew by 70% from 2022 to 2023.

Tesla uses battery cells from China’s Contemporary Amperex Technologies Ltd., or CATL, in versions of its Model 3 car. Ford uses CATL products in some versions of the F-150 Lightning electric pickup and the Mustang Mach E electric SUV. What about the solar industry? The price of solar panels also may rise because of the new tariffs. The tariff rate on solar cells will increase from 25% to 50% in 2024.

Colorado Gov. Jared Polis, a Democrat and clean-energy advocate, was less optimistic. He called the tariffs on solar cells and other items"horrible news for American consumers and a major setback for clean energy.''

 

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