Wednesday, July 2, 2025

U.S. Tariffs Skyrocket on Chinese EVs and Batteries: Beijing Reacts

Wang Yi, China’s Foreign Minister and a member of the Communist Party of China’s Central Politburo, sharply criticized the United States for its drastic tariff increase on Chinese electric cars and other goods. He stated that “it has reached the point of losing reason.”

According to Xinhua News Agency, on May 15th, Minister Wang made this remark after concluding the 5th China-Pakistan Strategic Dialogue in Beijing. He stated in a press conference, “The United States has often unilaterally sanctioned China and abused Section 301 tariffs, which is close to suppressing China’s normal economic, trade, scientific, and technological activities irrationally.”

He continued, “This is the most typical bullying and unilateral harassment in the world,” and criticized, “Some people in the United States have already lost their reason to maintain a unipolar hegemony.”

He argued, “The relentless suppression of China cannot prove the power of the United States, but rather exposes that the United States has already lost its confidence and is disturbed.” Adding, “The United States will never be able to solve its problems and will further damage the normal operation of the international industrial and supply chains.”

He further stated, “This cannot hinder China’s development and prosperity, but will instead stimulate the efforts of 1.4 billion Chinese people for national prosperity.”

He also criticized, “The World Trade Organization (WTO) has already concluded that the US’s Section 301 tariffs are actions that violate WTO rules and international law,” and “The United States, as one of the founders of the WTO, is not only unwilling to set an example, but is breaking the rules.”

He emphasized, “Unilateral actions and protectionism are contrary to the trend of times and will inevitably be crushed by the wheel of history,” and “At an important time for the world’s economic recovery, the international community should rightly warn the United States not to create new problems.”

President Joe Biden of the United States directed the United States Trade Representative (USTR) to raise tariffs under Section 301 of the Trade Act to respond to China’s unfair trade practices and the resulting damages. The tariff increase targets Chinese imports worth $18 billion.

Looking at the increase by item, electric cars will increase from 25% to 100% within the year, lithium-ion electric car batteries from 7.5% to 25% within the year, non-electric car lithium-ion batteries from 7.5% to 25% by 2026, and battery parts from 7.5% to 25% within the year.

Also, the tariffs on key minerals such as natural graphite and permanent magnets will rise from the current 0% to 25% by 2026. Other key minerals will see a significant increase in tariffs from 0% to 25% this year.

In addition, tariffs on certain Chinese steel and aluminum products will increase from the current 0–7.5% to 25% within the year. The tariff on solar cells will be uniformly raised from 25% to 50% this year, regardless of whether the solar cell modules are assembled.

On May 14th, the Chinese Foreign Ministry announced it would “take all necessary measures to protect its legitimate rights and interests.” A spokesperson for the Chinese Ministry of Commerce also stated that “China strongly opposes and will engage in serious negotiations (protests through diplomatic channels).”

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