Why is US imposing 100% tariff on Chinese electric cars?

this is a really big moment for the global economy because Joe Biden has imposed these tariffs let me just kind of show you what we're talking about with tariffs of course that's the amount that you have to pay to get Goods into a given country and in the US up until recently actually there was a standard car tariff the most favored nation tariffs that's known 2.5% so it wasn't much for China it wasn't much for places other places that are trying to send cars to the US then of course Donald Trump came in and he raised it he raised it by 25% a lot of people thought Joe Biden wouldn't continue that but now he has actually gone further he's doubled down that actually he's kind of quadrupled down on Donald Trump a new 100% tariff that's on top of the 2.5% so actually it's 102.5 tariffs enormous tariffs and why is the US doing this well partly is because they're really worried about competition they're worried about competition from China and this chart really kind of shows you that story it shows you Global exports of cars from all of these countries so the biggies like the US like Germany like Japan and look at China okay so the red line here it was really low for years and years years up until recently when it has overtaken everyone else and why has it done that it's because of electric cars China so dominant when it comes to electric cars but here's the thing they're not dominant when it comes to Electric Car Imports into the US this is showing you where the US is getting its electric cars from right now and look at China red bit over there it's really small actually if I kind of just pull that across there you see it's one of the smallest importers into the us but of course you've got the EU there youve got South Korea a big question is how how many Chinese components going into Mexican cars that then go over the Border we don't really know what's going to happen with that what we do know is a lot of the components inside of electric cars because it's not just about the car it's about what goes inside it they also come from China so you've got the battery the cell as people call it this is showing you Global dominance of China the red bits there is China Chinese dominance that dark bit there that's the US you can see how dominant China is when it comes to the cells but also the chemicals inside the cells the cathodes China massively dominant there the anodes the graphite that you need inside these batteries as well and we could extend this and look at other things as well like hydrogen you could look at concrete you could look at steel China incredibly dominant and all of the the point here is the US is trying to increase its share but it's going to be very difficult it's going to be difficult too not just for Batteries but also for solar as well cuz look at how China is way ahead of the rest on that as well so it's only the beginning of a very big Saga here and of course the next question is what about the EU and what about the UK

Channel: Sky News

Views: 73,371

Keywords: CHINA, USA, UNITED STATES, BIDEN, SKY NEWS LIVE, SKY NEWS, CARS, IMPORTS, CAR, ed conway, electric cars

Id: 9PEcRiZPdvY

Length: 2min 29sec (149 seconds)

Published: Tue May 14 2024