The long-rumored U.S. policy of imposing tariffs on China has finally landed, and China's electric vehicles have become the focus of the U.S. tariffs.
On May 14, the White House issued a statement saying that it would significantly increase tariffs on electric vehicles, lithium batteries, solar cells, steel and aluminum, cranes and other products imported from China. Among them, the tariff on electric vehicles will be increased from the current 25% to 100%.
It is worth noting that although Chinese automobiles and new energy vehicles are making great progress on the way to the sea, the current layout of mainstream car companies in the US market is basically negligible. According to the data of the China Passenger Car Association, the total number of passenger cars exported by China to the United States in 2023 will be 74,800, accounting for only 1.4% of the total exports; 18,600 new energy passenger vehicles, accounting for only 0.4%.
Cui Dongshu, secretary general of the National Passenger Car Market Information Association, told the editor of "Caiquan Society & Daoge Talking Car" that it is necessary for Chinese auto companies to export to the United States to increase international sales. However, the U.S. increase in tariffs on electric vehicle imports from China has little impact on China's auto exports at the moment.
Even judging from the total amount of passenger cars exported from China to the United States, it seems that the impact on the domestic market of the United States is not large. The U.S. imposes tariffs on China's electric vehicles?
Self-perceived "precautions"?
The U.S. approach to imposing tariffs on Chinese electric vehicles is actually a foregone conclusion. Fu Bing, executive vice president of the China Association of Automobile Manufacturers, said in an interview with CCTV: "The United States has imposed tariffs on China's new energy vehicles and electric vehicles, which is a typical trade protectionism. Trade protectionism can only hurt the industry and enterprises, and it is very detrimental to the healthy development of the global automotive industry and the transition to electrification. ”
At present, China's new energy vehicles are making great progress, and they have significant advantages in technology, sales and cost control. Zhang Xiang, director of the Vodaf Digital Vehicle International Cooperation and Research Center, told the editor of "Caiquan Society & Daoge Talking Car" that the United States may be worried that Chinese electric vehicles will enter the American market in the near future, because China's electric vehicles are relatively advanced in technology and relatively low in price, they will be sought after and welcomed by consumers in the American market. At the same time, Zhang Xiang mentioned that the electric vehicle technology produced by most local American car companies is relatively backward, and it is difficult to achieve scale effect due to low sales.
According to the Associated Press, China's BYD's low-priced electric car "Seagull" has already posed a huge threat to the U.S. auto industry. "Good performance and exquisite craftsmanship." The American media praised the "Seagull" car, but the price was only 1/4 of the American car. "This car is posing a huge threat to the U.S. market." The car costs $12,000 in China, but it's comparable to an electric car that costs three or four times more than the price in the United States. Imposing a 100 percent tariff on Chinese imports would at least keep Chinese seagulls away from U.S. shores for the time being or less competitive.
Of course, at present, the number of Chinese cars, especially new energy vehicles, entering the US market is almost negligible, and the US tariffs seem to be a very smart "rainy day", but "rainy day" is necessarily useful? As early as 2017, the United States implemented the "double reversal" of stainless steel products to China, and at that time, China's steel exports to the United States were insignificant. According to some in the industry, the crux of the US steel industry is not the so-called "unfair competition" or the lack of adequate protection, but the fact that it has relied on its monopoly position for many years and does not pay attention to relying on technological progress to improve production efficiency. What the U.S. steel industry really needs is to promote reform through opening-up, and trade protection will only increase corporate inertia.
In a dramatic scene, late last year, U.S. Steel, a giant that supplied steel to the Empire State Building in New York, agreed to accept a takeover from a Japanese company.
The impact on China's auto exports is small, but it has a ...... on U.S. automobiles
At present, China's auto industry is in the golden age of exports, and the U.S. tariffs on China's electric vehicles seem to be a "slap in the face" for China's auto exports. However, the reality is that it may not have much of an impact on the volume of car exports to China.
According to the China Association of Automobile Manufacturers, in 2023, China will export 4.91 million vehicles, a year-on-year increase of 57.9%, surpassing Japan to become the world's largest automobile exporter. Among them, the export volume of new energy vehicles reached 1.203 million units, a year-on-year increase of 77.6%. According to the statistics of the General Administration of Customs, the top five destinations for China's auto exports in 2023 are Russia, Mexico, Belgium, Australia, and the United Kingdom.
According to the data of the China Passenger Car Association, the total number of passenger cars exported by China to the United States in 2023 will be 74,800, accounting for only 1.4% of the total exports; 18,600 new energy passenger vehicles, accounting for only 0.4%. In recent years, China's NEV exports to the U.S. have also been low, with about 28,000 units in 2022, 18,600 units in 2023, and only about 3,000 units so far this year.
Zhang Xiang told the editor of Caiquan Society & Dao Ge Says Che that the number of passenger cars exported from China to the United States is negligible for independent brands, and the small export volume may be mainly contributed by joint venture brands. From the perspective of domestic car companies, more car companies are still in a wait-and-see state for the US market, and only a few car companies such as NIO and Chery have clearly stated that they have plans to enter the United States, but there is no clear plan or action at present.
The U.S. tariffs on Chinese electric vehicles have little impact on China's auto exports, but it does not mean that they will have little impact on the U.S. auto industry. In particular, the U.S. has also mentioned an increase in tariffs on lithium-ion electric vehicle batteries and other battery components from 7.5% to 25%. In Zhang Xiang's view, China has now achieved corner overtaking in the field of new energy, and China has the world's largest new energy vehicle industry chain, so if the United States rejects China's new energy vehicles and parts, it will lead to the technical level of American car manufacturing not reaching the world's most advanced level.
"This is also a loss for the United States, because now cars are international and open, and it is impossible for everyone to build cars behind closed doors. Just like China's car, it also purchased American chips, so it is normal for American cars to purchase China's power batteries or charging piles, only by cooperating with each other can we do a good job of this product, and the price is competitive", Zhang Xiang said that the policy to be implemented in the United States is also a very serious negative impact on the new energy vehicle industry in the United States, including American consumers.