Elon Musk, the CEO of Tesla, stated that he disagrees with President Biden’s recent declaration of a tariff on electric cars built in China.
During a Q&A session at the VivaTech conference here on Thursday, Musk responded to a question from CNBC’s Karen Tso by saying, “Neither Tesla nor I asked for these tariffs.” “To be honest, I was taken aback when they were revealed.”
The Biden administration said last week that it would impose a 100% tariff on imports of electric vehicles built in China in an effort to prevent the cheap Chinese EVs from overtaking American markets. The White House claims that companies are overproducing low-cost renewable energy items, such as electric vehicles and solar panels, to meet domestic demand thanks to Beijing’s subsidies.
This year has been difficult for Tesla because of its ageing EV fleet, declining consumer demand, and heightened competition from around the world, particularly in China. The first quarter had the biggest decline in revenue since 2012, and in 2024, the stock price fell by about thirty percent.
Musk stated on Thursday that Tesla “competes quite well in the market in China with no tariffs and no deferential support.” “I support the absence of tariffs.”
Musk went on to say that he is also against subsidies for electric vehicles.
The CEO of Tesla declared, “I support no tariffs and no incentives for oil and gas, or for electric vehicles.”
Musk made the following statement on Thursday: earlier in the year, he hinted that if trade barriers are lifted, Chinese electric vehicle businesses will destroy their rivals outside.
During the company’s January earnings call, Musk stated, “Frankly, I think if there are no trade barriers established, they will pretty much demolish most other companies in the world.”
Earlier, Musk’s queue cut out and the audience had to wait for him to return online for many minutes when he was asked if he thought Biden’s 100% tariffs would allow him to launch a cheaper automobile.
Biden’s prevention measures to not let China control US market
Mr. Biden pledged last week to prevent China from “unfairly controlling the market” for essential products including computer chips, batteries, and basic medical supplies, as well as electric cars.
China to take retaliatory measures against tariff hike
China declared that it will retaliate for the tariff hikes and expressed opposition to them.
China began an anti-dumping investigation this week into the imports of common plastic from the US, the EU, Taiwan, and Japan.
In response to trade tensions with the US and Europe, the Ministry of Commerce announced that it will look into imports of polyoxymethylene copolymer, which is used in autos and electronics. This move was interpreted as a warning from China.
China also hinted this week that it may impose up to 25% tariffs on US and EU imports of autos with big engines.
The China Chamber of Commerce to the EU claimed that “insiders” had informed them about the possible move.
The European Commission (EC), which is in charge of the EU’s trade policies, has given itself until July 4th to determine whether to take action against the import of electric vehicles (EVs) manufactured in China.
Source- CNBC News and BBC News
