Monday June 17, 2024

Elon Musk slams President Biden's tariffs on Chinese electric vehicles

Elon Musk disagrees with Biden's tariff move on Chinese-Made electric vehicles

By Web Desk
May 24, 2024
Elon Musk opposes Bidens tariff announcement on Chinese EVs. — Bloomberg
Elon Musk opposes Biden's tariff announcement on Chinese EVs. — Bloomberg

Elon Musk, the CEO of Tesla, expressed his dissatisfaction with President Biden's recent decision to impose tariffs on Chinese electric vehicles (EVs).

"Neither Tesla nor I asked for these tariffs," Musk said during a Q&A session at the VivaTech conference. “In fact, I was surprised when they were announced.”

“Tesla competes quite well in the Chinese market with no tariffs and no preferential support,” he highlighted.

The Biden administration announced a 100% tariff on China-made electric vehicles to curb the influx of cheap Chinese EVs into the US market. The White House stated that subsidies by the Chinese government lead to overproduction of clean energy products, such as EVs and solar panels, surpassing domestic demand. Tesla has encountered challenges this year, including an ageing fleet of EVs, subdued consumer demand, and heightened competition, especially in China.

"I’m in favor of no tariffs and no incentives for electric vehicles, or for oil and gas," Musk affirmed, rejecting not only tariffs but also tax incentives for EVs and fossil fuels alike.

This stance aligns with Musk's earlier prediction that Chinese EV companies could dominate global markets without trade barriers. When questioned about the potential impact of Biden's tariffs on Tesla's plans to introduce lower-priced vehicles, Musk's response was interrupted, leaving the audience in suspense.