Criticism of Biden
Elon Musk: “We didn’t ask for these tariffs”
Tesla boss Elon Musk does not like the import tariffs recently imposed by the US government on Chinese e-cars after all. "Neither Tesla nor I asked for these tariffs, I was actually surprised when they were announced," Musk said on Thursday.
"Things that hinder the free exchange of (goods) or distort the market are not good," he added during a video conference at Viva Technology in Paris on Thursday. "Tesla is doing quite well in the Chinese market without tariffs and without support," Musk said. "I'm in favor of no tariffs." In January, however, he warned that without trade barriers, Chinese car manufacturers would "demolish" their competitors, which was seen as support for the policy of US President Joe Biden, who is following in the footsteps of his predecessor Donald Trump.
China also brings higher levies into play
Last week, Washington quadrupled the tariffs on Chinese e-cars. Biden justified this with unfair trade practices by China that threatened the US economy. Other goods from China are also affected by the new tariffs. According to the US government, the measures affect goods worth 18 billion dollars (around 16 billion euros).
Countermeasures from Beijing are likely to follow soon. An expert from a state research institute spoke of a 25 percent import duty that would apply to Western combustion vehicles with larger engines. This is likely to hit German car manufacturers BMW and Mercedes in particular.
Unanimous criticism in the automotive industry
It is no wonder that other car manufacturers besides Tesla are also opposed to the increase in tariffs. Stellantis CEO Carlos Tavares described tariffs as a "major trap" in an interview with the news agency Reuters on Wednesday. They would not prevent the necessary adjustment of Western car manufacturers to the competition from China, but would merely drive up inflation. Tavares spoke of a "Darwinian period" in which the industry currently finds itself. The price war with Chinese rivals will be "very tough". "It won't be easy for dealers. It won't be easy for the suppliers. It won't be easy for the car manufacturers themselves." Electric car manufacturers from China currently have a cost advantage of 30 percent.
VW Chief Technology Officer: European "master plan" missing
Thomas Schmall, Volkswagen Board Member for Technology, said that a "master plan" was now needed in Europe. The USA had made a good start with the Inflation Reduction Act, and there were also clear plans for industry and politics in China. Something similar was missing in Europe. "The door is closing," he said.
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