Forget Chinese EVs. Biden’s Tariffs Will Hit The Cheapest Tesla Model 3.

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A higher tariff on EV battery imports will make Tesla’s cheapest car, the Model 3 RWD, more expensive to produce. Other EVs may be affected too.

Of all the hefty tariffs against Chinese goods that President Joe Biden’s administration announced this week, the 100% tax on electric vehicles has gotten the most buzz. That the White House felt the need to effectively double the price of any Chinese EV coming to U.S. shores underscores just how vulnerable the world’s automakers are right now But other parts of Biden’s anti-China trade agenda will have a more significant and immediate impact on the U.S. EV landscape.

“It's safe to say there's no EV being put on the market anywhere in the world that isn't dependent in some way on materials processing and manufacturing that's taking place in China,” said Jay Turner, a professor of environmental studies at Wellesley College and the author of Charged: A History of Batteries and Lessons for a Clean Energy Future. The Biden Administration has made it a priority to build up domestic battery manufacturing and disentangle the U.S.

 

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