Tesla CEO Elon Musk has made headlines once again, this time for his opposition to US tariffs on Chinese electric vehicles (EVs). Just days after President Joe Biden quadrupled levies on EVs imported from China, Musk spoke out against the new measures.
“Neither Tesla nor I asked for these tariffs,” Musk stated during a technology conference in Paris via video link. This statement comes as a surprise to many, considering Musk’s previous warning in January that Chinese car makers would “demolish” competitors from other countries if there were no trade barriers.
The White House defended the new tariffs as a response to unfair policies and a measure to protect US jobs. However, Musk expressed his disagreement with the decision, stating, “Things that inhibit freedom of exchange or distort the market are not good.”
Musk highlighted Tesla’s success in the Chinese market, where the company competes without tariffs or differential support. “Tesla competes quite well in the market in China with no tariffs and no deferential support. I’m in favour of no tariffs,” he added.
President Biden has maintained several tariffs on China introduced by his predecessor, Donald Trump, while increasing trade pressure on Beijing. Last week, Biden vowed to prevent China from “unfairly controlling the market” for electric vehicles and other key goods.
In response to the tariff hikes, China announced an anti-dumping probe into imports of a widely used plastic from the US, EU, Taiwan, and Japan. This move is seen as a signal that China is prepared to retaliate in its trade disputes with the US and Europe.
Furthermore, China hinted at imposing tariffs of up to 25% on cars with large engines imported from the EU and US. The potential move was revealed to the China Chamber of Commerce to the EU by insiders.
The European Commission has set a deadline of 4 July to decide whether to impose measures against imports of Chinese-made EVs. The ongoing trade tensions between the US, China, and Europe continue to escalate, with key players like Elon Musk voicing their opinions on the matter.
