Sun. May 26th, 2024

Biden Wants EVs so Badly That He Will Quadruple Tariffs on Them

Tyler Mitchell By Tyler Mitchell May15,2024 #finance

Astute readers will immediately notice the title of this post makes no sense. It’s not supposed to. But it is exactly what President Biden is doing.

Biden to Quadruple Tariffs on Chinese EVs

Counter to the idea that quick EV adoption is needed to save the planet from a climate disaster, please note Biden to Quadruple Tariffs on Chinese EVs

The Biden administration is preparing to raise tariffs on clean-energy goods from China in the coming days, with the levy on Chinese electric vehicles set to roughly quadruple, according to people familiar with the matter.

Higher tariffs, which Biden administration officials are preparing to announce on Tuesday, will also hit critical minerals, solar goods and batteries sourced from China, according to the people. The decision comes at the end of a yearslong review of tariffs imposed by former President Donald Trump on roughly $300 billion in goods from China.

Officials are particularly focused on electric vehicles, and they are expected to raise the tariff rate to roughly 100% from 25%, according to the people. An additional 2.5% duty applies to all automobiles imported into the U.S. The existing 25% tariff on Chinese electric vehicles has so far effectively barred those models, often cheaper than Western-made cars, from the U.S. market. Biden administration officials, automakers and some lawmakers worry that wouldn’t be enough given the scale of Chinese manufacturing.

Conflicting Goals

We need EVs so badly that we also need a 100% tariff to stop them. That makes no sense but it is the precise message.

Stated differently, we don’t want EVs unless people are willing to pay 100% more for them. And this is despite the claim that the world as we know it will end in 12 years if we don’t act on them.

World Will End in 12 Years 

Recall AOC’s shocking revelation World Will End in 12 Years if we don’t act on climate change. That was in 2019.

There are only five years left to save the world, but here we are upping the price of cheap EVs by 100%, ensuring imported EVs cannot possibly be cheap.

This is what happens when you have two massively conflicting goals, both of which are individually ridiculous.

Price of the New Green Deal

A think-tank led by a former Congressional Budget Office director has come up with a price of the New Green Deal.

Note that the cost of AOC’s New Green Deal is $51 to $93 Trillion vs. the Cost of Doing Nothing

Mass Hysteria Over 1 Degree in Climate Change

For a complete synopsis of how deranged the climate madness is, please see Investigating the Mass Hysteria Over 1 Degree in Climate Change Since 1850

Notably, even if by some miracle we follow the proposed guidelines, the current best estimate is temperatures will rise anyway until 2100 by 1.4 degrees anyway.

There’s a mere 0.4 degrees difference from a very radical effort to cut emissions to 0 by 2050 to a much more modest goal.

the European electric vehicle market – the ports of Antwerp and Zeebrugge are inundated.”

China Produces 55 Percent of All Steel, Biden and Trump Eye Tariffs

China produces nearly 80% more than the next nine biggest steel producers, which are, in order, India, Japan, the US, Russia, South Korea, Turkey, Germany, Brazil and Iran.

Hot-Rolled Steel courtesy of Trading Economics.

On May 5, I noted China Produces 55 Percent of All Steel, Biden and Trump Eye Tariffs

Is China Dumping Steel?

Let’s define dumping as exporting steel at a cost lower than the cost to produce it.

I would prefer to have a definitive answer with percentages, but let’s assume China is dumping steel.

Who are the Beneficiaries of Dumping?

  • The entire construction industry, especially home builders and road construction.
  • The US auto industry and machinery producers.
  • Ultimately, US consumers win. Everything made with steel costs less to produce and those costs are inevitably passed on to consumers.

Who Are the Losers?

  • 83,600 US Steel Workers
  • Chinese consumers

Ultimately, Chinese consumers pay a price by subsidizing US consumers who benefit. Yet, we complain.

Neither President Biden nor Trump understands the above simple truth.

Belgium’s Ports Drowning Under Glut of Chinese EVs

‘Some are parked here for a year, sometimes more.’

On May 6, my Hoot of the Day was Belgium’s Ports Drowning Under Glut of Chinese EVs

Le Monde moaned “Due to China’s overcapacity in production – as it aims to capture a quarter of

Reflections on Overcapacity

Dictionary defines overcapacity as “the situation in which an industry or factory cannot sell as much as it can produce.”

Merriam-Webster defines overcapacity as “excessive capacity for production or services in relation to demand.”

Many complain that China is producing more cars and steel that it can use. Think about that for a second.

If no country produced more goods than it could use, foreign trade would drop to zero.

That appears to be the misguided goal (result if you prefer) of policy actions by Biden and Trump.

Everyone wants to be a net exporter, but that’s mathematically impossible. It’s also impossible if no country produced more goods than it could use.

And finally, exports are impossible if countries jack up tariffs to the extent that foreign trade is impossible.

I foresee a huge global trade war with immensely negative consequences. Looking ahead, that is #1 idea for 2025 no matter who wins the election.

Tyler Mitchell

By Tyler Mitchell

Tyler is a renowned journalist with years of experience covering a wide range of topics including politics, entertainment, and technology. His insightful analysis and compelling storytelling have made him a trusted source for breaking news and expert commentary.

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One thought on “Biden Wants EVs so Badly That He Will Quadruple Tariffs on Them”
  1. The Biden administration’s decision to quadruple tariffs on Chinese electric vehicles is a bold move but necessary to protect domestic manufacturers and ensure fair trade practices.

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