Stellantis CEO Carlos Tavares slammed the Biden Administration’s new tariff against Chinese electric vehicle (EV) imports in the United States.
According to Tavares, the Biden Administration’s recent tariffs are “just going to end up with more inflation inside the bubble.”
“Protectionism has a lot of drawbacks. They don’t appear immediately; they appear one after the other,” he said.
Earlier this week, the Biden Administration implemented new tariffs on Chinese electric vehicles and other products from China. The White House placed the largest tariffs on Chinese EVs, with over a 100% increase. The Biden Administration is also considering penalties on Chinese EV automakers moving production to Mexico.
While the United States takes a bolder stance against Chinese EVs and other products to protect local companies, Europe is still mulling over the potential consequences of setting tariffs on Chinese EVs.
Europe is also concerned about Chinese EVs undercutting local automakers in the region. European car manufacturers are having difficulty offering vehicles at the same prices as Chinese-made EVs.
The EU Commission initiated an anti-subsidy probe into Chinese EVs and their effect on the European EV market. Europe is also considering placing higher tariffs on Chinese EVs. According to Rhodium Group, however, tariffs on Chinese EVs must be more than 50% higher to affect the current EV market in Europe and give European automakers a chance against China’s electric vehicle offerings.
Stellantis has approached the competition a little differently. It has partnered with Chinese automaker Leapmotor.
Earlier this week, Stellantis and Leapmotor announced they would launch a sub-€20,000 electric hatchback in Europe. The pair plan to launch the affordable Stellantis-Leapmotor electric hatchback in at least 9 European countries by September 2024.
“Whether I like it or not, they are grabbing share. What I can do is leverage that dynamic,” said Stellantis CEO Carlos Tavares, reported The Guardian.
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