2024 is an election year in the United States, so when looking at the trends in the United States, we need to look at the concerns of the Democratic Party and the Republican Party in the United States, because the votes are the focus. As the former president of the United States, Trump previously threatened to impose 100% tariffs on China's electric vehicles, Trump's strategy has been implemented by US President Biden, which will obviously make Trump feel resentful, because the imposition of tariffs on Chinese products is Trump's routine, Trump started a trade war with China, and now US President Biden is playing the trade war "like a fish in water". In fact, the United States is playing with the so-called "void sanctions" against China's electric vehicles.
To put it bluntly, it is to impose sanctions on non-existent products, China's electric vehicles are not officially sold in the United States, and the cars that appear in the United States are obtained through abnormal channels, but the Biden administration in the United States is "fanfare" to announce that it will impose 100% tariffs on electric vehicles produced in China, which is 4 times the previous 25% tariff, and it is obvious that the United States is not ready to let Chinese electric vehicles enter the American market. This is done by using tax leverage to force dealers in the U.S. to abandon county-related businesses. Regarding the "empty sanctions" of the Biden administration in the United States, Beacon Front Station believes that there is already a rhythm for the EU to demonstrate, because the EU has already complained about the sales of Chinese electric vehicles in Europe.
Europe originally had a strong foundation in the field of automobile manufacturing, but with the rise of new energy vehicles, the European automotive industry lost its competitive advantage, and now Chinese-made electric vehicles are popular in Europe, and they are also sold at higher prices than European local brands. In 2023, there has been a heated discussion within the EU, trying to impose special tariffs on Chinese electric vehicles, in fact, the EU is not because Chinese electric vehicles are expensive, but because they are worried that Chinese electric vehicles are too cheap. In the field of electric vehicles, Chinese products have strong competitiveness, so they have been recognized by the market, and Chinese brands have more performance advantages than European local brands for electric vehicles at the same price.
The United States has been trying to encourage Europe to impose restrictions on Chinese electric vehicles, and apparently now the United States has set a demonstration that by imposing 100% tariffs, the threshold for entry has been set, and obviously with 100% tariffs, Chinese electric vehicles are not only unable to compete with local products, but also with products from other countries. The Biden administration's move by the Biden administration is "killing multiple birds with one stone" by trying to prevent the EU from taking similar measures through its own example, so as to prevent the further expansion of China's electric vehicle industry.
In fact, now the EU is suffering from a "two-sided attack", because when the United States says no to China's electric vehicles, it also takes a discriminatory stance against EU companies, and the US industrial subsidies are only aimed at local manufacturers in the United States, and it is obvious that the product sales of EU companies will be impacted. Judging from the conflict in the Ukraine crisis, the EU is just a tool of the United States, and when the United States is actively encircling and containing China, the United States also wants to use the EU as a tool.