Foreword: On Tuesday, U.S. President Joe Biden instructed the Office of the U.S. Trade Representative (USTR) to impose more than 102% total tariffs on Chinese electric vehicles, as well as new tariffs on other products such as steel, aluminum, computer chips and solar cells.
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According to the results of the four-year review of trade with China, the total tax rate on imported electric vehicles in China will rise from 27.5% to 102.5% this year. The review was conducted under Section 301 of the Trade Act of 1974, which allows the U.S. government to retaliate against trade practices deemed unfair or contrary to global standards.
After announcing the tariff on new energy vehicles, Jia Yueting's Faraday Future market value soared, with an increase of 367.2% on the day.
In this regard, Jia Yueting claimed: More and more people are paying attention to the uniqueness of FF as a bridge between the Chinese and American automobile industries.
If even if the factory is built in the other country, then Jia Yueting may have forgotten that there are many bridges between the Chinese and American auto industries, including Tesla, General Motors, Ford and other American companies have built factories in China. It's just that the only Chinese car company that has built a factory in the United States is FF, and compared to Tesla, which has built a factory in China, FF itself is obviously an unsuccessful example.
Jia Yueting also said that he and his IP are also working hard to build a bridge of friendship between China and the United States and an economic bridge between China and the United States.
It is not difficult to see from the above that Jia Yueting may want to build his own "bridge" value, or the value of investing in the United States to build a factory; It may also be that Jia Yueting is still fantasizing about the existence of friendship between China and the United States.
In recent years, the United States has cracked down on China everywhere, from semiconductors to steel and automobiles. Biden also made it clear that the purpose of the above bill is to curb the development of China's electric vehicle industry and transfer the production base of electric vehicles to the United States. For a country that curbs the industrial development of its motherland, Jia Yueting's bridge is better to wake up early!
The Biden administration has hinted that new penalties could be imposed if Chinese EV makers try to shift production to Mexico to avoid newly announced import taxes.
Asked about the new tariffs at a White House news briefing on Tuesday, U.S. Trade Representative Katherine Tai said, "China is using Mexico as a workaround, "something we're discussing with our industry, our workers and our partners," Tai said.
Following Tai's remarks, the USTR said there were a number of actions the USTR could take in addition to tariffs, noting that the U.S.-MEXICO-CANADA has provisions to address unfair subsidies and efforts to avoid import tariffs.
It can be said that the US tariff hike on Chinese electric vehicles may be just the beginning, just like the US sanctions on Huawei in 2018. From the initial ban on government departments to the subsequent all-round sanctions on hardware and software.