Biden's EV tariffs may not be enough to stave off the threat of Chinese vehicles in the U.S.

President Joe Biden's plan to impose a 100% tariff on Chinese-made electric vehicles (EVs), a significant increase from the current 25%, aims to protect U.S. automakers but may not effectively block the entry of cheaper Chinese EVs into the U.S. market. Despite the higher tariffs, loopholes remain, such as Chinese automakers producing in other countries like Mexico, which could still allow Chinese EVs to be competitive in the U.S.

Experts suggest that while the tariff increase is a protectionist measure that might delay Chinese automakers, it will not prevent their eventual entry into the U.S. market. The quality of Chinese vehicles has improved, and companies like BYD are poised to compete internationally, potentially still offering lower prices even with the new tariffs. The Biden administration's focus on EVs aligns with its clean energy goals, yet the effectiveness of these tariffs in the long-term remains uncertain.