Tesla owner Elon Musk has protested the US government’s increased tariffs on Chinese electric vehicles (EVs). Musk’s comments come days after President Joe Biden announced tariffs on EVs imported from China protested.
“Neither Tesla nor I asked for the tax,” billionaire Musk said via video link at a technology conference in Paris.
Musk’s comments contradicted the warning he gave in January. At the time, he warned that Chinese carmakers would ‘destroy’ competitors from other countries if there were no trade barriers.
Last week, the White House took some new steps, including a 100 percent tariff on EVs imported from China. He explained these steps as a reaction against unfair policies and said they were done with the aim of protecting American jobs.
‘Actually, I was surprised when this was announced. Things that prevent freedom of exchange or distort the market are not good,” Musk said. “Tesla is competing well in the Chinese market with no tariffs and no differential support. I am in favor of ‘no tariff’.
Biden has increased trade pressure on Beijing and maintained high tariffs on Chinese goods, a continuation of former President Donald Trump’s policies.
Last week, Biden vowed not to allow China to “unfairly control the market” for electric vehicles and other key goods, including batteries, computer chips and basic medical supplies.
China has opposed the tariff hike and warned of retaliatory measures.
This week, China launched an anti-dumping investigation into plastics that are widely imported from the US, the EU, Taiwan and Japan.
The Commerce Ministry’s announcement to investigate imports of polyoxymethylene copolymer, used in electronics and cars, is seen as a sign that China is returning to a trade war with the US and Europe.
Similarly, just this week, China indicated it may impose tariffs of up to 25 percent on large-engined cars imported from the EU and the US.
The European Commission (EC), which oversees the EU’s trade policies, will decide by July 4 whether to take action against imports of Chinese-made EVs.
