The Chinese Association of Automobile Manufacturers today described the US government’s plans to quadruple tariffs on imported electric cars from China as a “protectionist and isolationist” action.
Cited by the official news agency Xinhua, the executive vice president and secretary-general of the association, Fu Bingfeng, rejected accusations of industrial overcapacity and national security concerns raised by Washington.
The institution reaffirmed its commitment to a “high level of openness”, which promises “greater market opportunities” for global car manufacturers. The same official explained that a “robust development of the automotive industry” requires “an open mind and a global vision”.
The US administration plans to announce on Tuesday the decision to increase tariffs on electric vehicles imported from China, which are expected to rise from 25% to nearly 100%, with an additional 2.5% tariff on all electric cars imported from China.
It is worth noting that in the past 10 years, China has seen the emergence of hundreds of electric vehicle brands in the country, leading to overcapacity and financial sustainability issues: more than 60% of Chinese electric car manufacturers sell less than 10,000 cars per year.
Due to the fierce ongoing price war, only the American Tesla and the Chinese BYD are able to remain profitable, which should lead to a consolidation of the sector in the coming years.
