Secretary of Energy Jennifer Granholm on Tuesday said that the Biden administration's plan to quadruple tariffs on imported Chinese electric vehicles to over 100% in August is crucial to the health of the U.S. auto sector. "We need to have that industry here," Granholm said in an interview with Reuters on Tuesday. "If we didn't do that, we would just be ceding the entire territory to China like we saw happen with solar panels.
The Biden administration previously announced that the higher tariffs on Chinese EVs are set to take effect on Aug. 1. It views the tariffs, which are taxes on imports, as a means of protecting U.S. jobs in the auto industry from a flood of cheap Chinese imports. "We want to have a manufacturing backbone. We have to be tough about it," Granholm said. She went on to say that U.S.
Granholm said that despite Republican opposition to the Biden administration's subsidies for U.S.-made EVs, it would be "political malpractice" for Congress to reverse those EV credits in the future because they benefit workers building vehicles in Republican-voting states. "I think it would be hard for a member of Congress to undo these tax credits that are creating jobs in your district," she said.
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