Everybody knows about the ongoing tensions between the United States and China, especially in terms of trading. For the last couple of years, several trading tariffs have been adopted against the Chinese People’s Republic. In September, it’s all about the EV industry.
The situation of the EV industry worldwide
Countries worldwide are looking for alternative energy sources. The ultimate goal is to reduce carbon emissions to the atmosphere and potentially limit climate change. One of the many initiatives is the European Green Deal, strongly endorsed by the European Union.
As a result of pro-ecologic actions, major businesses understood the potential opportunity and heavily entered the renewables market. Electric vehicles have steadily increased in popularity. Chinese automobile manufacturers provide the cheapest EVs in the world. Despite some flaws, drivers in Europe and America buy cars from China.
Increased interest in Chinese goods automatically alarms the U.S. government, regardless of the type of product or service. That’s why the administration of the outgoing POTUS, Joe Biden, decided to apply several tariffs, such as a 100% duty on Chinese electric vehicles and 50% on solar cells, valid from September 27th, to bolster the national EV industry and the whole national economy, including major indexes such as the S&P500.
Major American players in the EV industry
As the world develops solutions regarding renewable energy, the United States has multiple companies of its own. Everybody understands how popular Tesla is, with its Cybertruck model conquering the main pages of automobile and technology websites.
Together with Elon Musk’s gem in the crown, the American EV industry keeps an eye on Lucid. The company, also listed on NASDAQ, specializes in designing electric vehicles. Moreover, Lucid’s cars are recognized for their luxury, efficiency, and performance combination.
The EV industry is more complex, as evidenced by the number of U.S. tariffs. Biden’s administration also planned two new Chinese semiconductor categories that will go into effect in 2025. These include silicon wafers and polysilicon used in solar panels, and a 50% duty will be imposed on products imported from China.
U.S. elections: Trump & Harris’s position in trading with China
U.S. citizens also ask questions about the future relationship between the U.S. and China. It may be an essential question before the upcoming presidential elections.
The Republican candidate, Donald Trump, aims to implement a conservative approach, focusing on strengthening the U.S. Dollar. A former president’s idea is to trade with different countries in USD or implement increased tariffs.
Kamala Harris indicates that it is possible to maintain trading relations between the U.S. and China. However, the Democratic candidate highlights the idea that every international issue should be discussed with the United States’ interest at the forefront.
