Surge Battery Metals Inc. V.NILI

102% tariff on Chinese EV + 25% tariffs on lithium battery

[deepoil0808]

Under the findings of a four-year review on trade with China, the tax rate on imported Chinese EVs will rise to 102.5% this year, up from total levels of 27.5%. The review was undertaken under Section 301 of the Trade Act of 1974, which allows the government to retaliate against trade practices deemed unfair or in violation of global standards.

Under the 301 guidelines, the tariff rate is to double to 50% on solar cell imports this year. Tariffs on certain Chinese steel and aluminum products will climb to 25% this year. Computer chip tariffs will double to 50% by 2025.

For lithium-ion EV batteries, tariffs will rise from 7.5% to 25% this year. But for non-EV batteries of the same type, the tariff increase will be implemented in 2026. There are also higher tariffs on ship-to-shore cranes, critical minerals and medical products.

https://apnews.com/article/biden-china-tariffs-electric-vehicles-evs-solar-2024ba735c47e04a50898a88425c5e2c

[theSquire]

We see a spark of interest today, that is encouraging.  Currently China imports 0 EVs to the US Canada and Mexico. Those they do make, sadly seem to be well constructed and have longer ranges than North American vehicles at roughly 35% - 45% of the price. So if they did send vehicles this way and had tariffs applied at 102% they would still offer better quality EVs at lower prices. On the

[JimK]

Just curious, If the Chinese EVs are well constructed, cheaper and look sharp who is buying the 2.1 million GM imports? Jim K

[theSquire]

Hi Jim. I guess the same type of folks buy GM products in China as the ones who by them in North America :-)