Elon Musk has criticized the US government’s tariffs on Chinese-made electric vehicles, stating that the tariffs are detrimental and will distort the auto market.
The Tesla CEO had previously been in favor of trade barriers but changed his stance during a video appearance at a technology conference in Paris on Thursday.
“Neither Tesla nor I requested these tariffs, and we were actually taken by surprise when they were announced. Anything that hinders free trade and distorts markets is not beneficial,” Musk expressed via video link at Viva Technology.
President Joe Biden implemented new tariffs – taxes on foreign imports – on various Chinese products, including electric vehicles, this month to bolster US manufacturing. The White House upheld some of the tariffs introduced under President Donald Trump while escalating others, including quadrupling tariffs on electric vehicles to over 100%. Officials indicated that the new measures impact $18bn (£14bn) worth of Chinese imports.
In January, Musk had emphasized the necessity of trade barriers to prevent China from “annihilating most of the other car companies in the world.” Tesla has faced challenges from Chinese competitors, leading to pricing pressures. Just last month, Tesla regained its position as the world’s largest electric vehicle manufacturer from Chinese rival BYD, based on first-quarter vehicle sales.
During the Viva conference, Musk made a U-turn on statements from January, acknowledging that Tesla was competing “fairly well” in China’s primary market without the tariffs. Recently, a Chinese trade group mentioned that Beijing was contemplating retaliatory tariffs. Even with a gasoline vehicle.
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“Tesla is highly competitive in the Chinese market without tariffs or special assistance. I support no tariffs,” Musk stated.
Source: www.theguardian.com
