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The Biden administration is expected to announce new tariffs on Chinese electric vehicles and other strategic sectors, including batteries and solar equipment, next week, Bloomberg reported citing people familiar with the matter.
The news dragged Chinese EV stocks lower in early U.S. premarket trade: NIO (NYSE:NIO) -1.9%, Li Auto (NASDAQ:LI) -1.7%, XPeng (NYSE:XPEV) -0.6%, BYD’s Hong Kong-listed shares -1%. Chinese shares of battery makers CALB and Contemporary Amperex Technology also fell around 2%.
The fresh levies are a result of the White House’s multi-year review of the Trump-era Section 301 tariffs that began in 2022, according to the report.
Last month, Biden had proposed raising tariffs on Chinese steel and aluminum products to 25%, more than triple the current levy of 7.5%.
Biden also launched an investigation into Chinese trade practices in the shipbuilding, maritime and logistics sectors, which may lead to fresh tariffs.
The new tariffs could push Beijing to retaliate at a time when China-U.S. trade ties are already under pressure. China has said the tariffs imposed by the U.S. are counter-productive and inflict harm on the global economy.
