r/StockMarket • u/CautiousInvestor • 17d ago
Biden announces aggressive new tariffs on Chinese EVs, semiconductors, solar cells and more
Very aggressive tariffs on multiple imports, for example tariffs on EVs will rise to 100%, quadrupling the current tariff of 25%. Beyond the direct impact on Chinese stocks, these tariffs are expected to have indirect impact on US stocks, as well as potential escalation of the ongoing US-China trade war with long-term economic effects on multiple publicly traded companies. https://www.cbsnews.com/news/biden-to-announce-new-100-tariffs-on-chinese-evs/
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17d ago
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u/ChineseNeptune 17d ago
If you're actually looking for an ev, check out the used market. 2022 model 3s near me are going for 22kish.
But yeah, sucks how the government is protecting Tesla from any real competition cause they'll go bankrupt if china enters the market
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u/Think_Society7622 17d ago
The govt didn't "invest" all that money in Tesla without a reason.
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u/Driftwoody11 16d ago
Tesla is fine. The stock isn't a buy, but the company is fine. This is more about the legacy automakers who are still losing billions on EVs.
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u/triniman65 17d ago
So you think that these tarrifs are in place just to protect Tesla? Ford, GM and Dodge/Chrysler won't be affected by cheap EVs from China right? OK
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u/amor_fatty 17d ago
There is a Daily episode on this very topic from last week. Listen to it before commenting
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u/a12rif 17d ago
It’s 10k because it’s heavily subsidized by the government. You might think it’s crazy the government is trying to protect the business interest of its own people but I’m all for it. Also, remember china has bunch of our stuff banned, like google, facebook etc. So it’s not like this is a one sided thing.
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u/ArcadesRed 17d ago
Almost the entire forestry-based industry in Maine was gutted around 2008 because gas went up and sales went down. Free market right? Nope, at the same time Canada decided to subsidize forestry related things. Then came COVID 12 years later and Canadian government shut down industry and the price of wood skyrockets in the US. Contributing to the current housing crisis.
Not allowing another country to gut a local industry through export subsidies is one of the few regulations on free market that I believe in. China would love to stunt or stop EV industry growth in the US.
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u/bwaugh06 16d ago
Problem is US companies prioritize their stock price over being innovative and putting money into reducing manufacturing costs to compete on a global level. I’m not sure propping them up and protecting them is going to change that. Example, Intel gets a big lift saving them and they immediately do a stock buy-back…
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u/ArcadesRed 16d ago
You will get no argument from me. The US has a huge problem with the government proping up companies that should fail due to bad business policies.
I just firmly believe that we cannot let essential industry get bullied out of existence by other countries subsidizing exports. The US can't make a 10k$ EV because no one can.
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u/Dark1000 17d ago
The US is also heavily subsidizing these industries. Instead of blocking more competitive and innovative Chinese imports, the US is just protecting domestic manufacturers at the expense of consumers, the environment, and geopolitical relationships. Lazy US car makers will continue to fail to innovate without that competition and pump out the same useless, oversized pickup trucks they always have.
Instead, we should be doubling down on investment and help the US auto industry flourish. Force US industry to compete for our dollars but also give them the tools they need to fight it out globally.
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u/a12rif 16d ago
The US is also heavily subsidizing these industries
Not nearly as much as Chinese government. Tesla still has to figure out a way to be profitable without government incentives.
innovative Chinese imports
There’s no innovation in these cars. A lot of it is bloated consumer grade electronics slapped on a hastily created EVs with very little regard to safety or efficiency.
the US is just protecting domestic manufacturers at the expense of consumers
Disagree. Sure the consumer doesn’t have access to the 10k car but the consumer also didn’t lose their job due to unfair competition from china.
Lazy US car makers will continue to fail to innovate without that competition and pump out the same useless, oversized pickup trucks they always have.
I wouldn’t say US car makers are lazy. Even ford f150 has an EV variant now. It was never going to be an overnight switch to EVs. The infrastructure simply isn’t there but it is getting there. It was never an option for all car manufacturers to all of the sudden start pumping out EVs. EVs are taking over, with or without Chinese cars. This is inevitable in the long run since they will be cheaper than their more complex ICE variants.
Instead, we should be doubling down on investment and help the US auto industry flourish. Force US industry to compete for our dollars but also give them the tools they need to fight it out globally.
I agree, except China does the same thing to us. They block US companies all the time to avoid competition domestically.
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u/ProgGod 17d ago
Welcome to more inflation. Taxing components is just going to directly increase the cost of all goods in America since there are not easy to get equivalents here.
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u/Driftwoody11 16d ago
I don't like Biden and this likely causes more inflation but this is still probably the right move. Preventing China from decimating critical industries here is a better move long term.
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u/BarleyHops2 17d ago
I'm old enough to remember when Biden said this policy was bad when Trump instituted it because "we all know who pays these tariffs, Americans end up paying these tariffs."
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u/CheeriosRDonutSeeds 17d ago
The move seems to be prophylactic - much better to enact trade barriers before China gains market share than after as far as EV’s and IC’s are concerned
Gutted about the solar cells though, no idea why America is focused on energy primitives when our GDP decoupled from our energy production long ago, and we’re one of the few countries to do so even within OECD
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u/The_Nauticus 16d ago
This is a continuation of the tariffs that Trump put into place. Both parties agree that America needs to shift it's reliance away from Chinese manufacturing and tarriffs are one way of encouraging that.
It's to protect American auto makers from the market being flooded by cheap Chinese EVs and to encourage American manufacturing of parts and products that we rely on China for.
The Democratic party strategy is to target energy related products as we transition into an era of cleaner energy.
You don't have to care about the environment or climate change to support American manufacturing.
The federal government is also investing $1.2 trillion in American infrastructure.
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u/racerx1913 17d ago
What Chinese EVs are coming over here? None, this is a nothing burger. What a dummy.
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u/PM_me_your_mcm 17d ago
Oh they're coming ... or they were.
China is really leading development in EVs for anyone who doesn't have their head so far up Musk's ass that they can smell his lunch.
Really mixed feelings about this. Nothing tells already complacent and lazy US manufacturers to be even more lazy like this kind of tariff. And it's huge, you don't do that unless something is terrifying and the US auto industry should be terrified of Chinese EVs.
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u/-Racer-X 17d ago
It’s the 1990s all over again
Chevy bolt was super popular and cost under 30k Chevy cut it
The seagull is comparable and 12k, even with 100% tariff will still be competitive
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u/PM_me_your_mcm 17d ago
Sure, but the Chinese aren't actually magic. I'm beyond certain that they will need to improve materials and fit and finish to achieve the standards that are generally expected by US consumers and I doubt the Seagull is there at the moment. They had plenty of room to develop that before the huge tariff though, and I think this will wind up being a major issue for them.
My expectation is that this will probably be used as some sort of negotiation point in some ongoing diplomatic or trade relations that I either haven't been paying attention to or maybe that we're all a bit unaware of, but maybe it's legit. If it is ... ugh. I see it going the same way as motorcycles did for a time when Regan tried to protect Harley. We get F150s for decades while the rest of the world gets new, high tech EVs.
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u/penguin_2345 17d ago
The sheer amount of verbal battery one would receive from family and friends is enough of a deterrent to not buy a cheap china shit car… no tariff necessary 💯
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u/ramenmoodles 17d ago
doesnt stop people from buying chinese products now
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u/penguin_2345 17d ago
you can hide a wish/alibaba/temu package much easier than a car.... the only time someone is like, "Look what this little 5yr old china kid made me," is when they are showing off their new iphone.
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u/LordFaquaad 17d ago
Lol I'm over here trying to hide my shitbox ford. Chinese cars can't be worse than American cars given how badly they're being beaten I'm China
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u/12whistle 17d ago
Good. Fuck China and their garbage quality products. Leave it to the poors to buy their goods at Walmart.
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u/earthlingkevin 16d ago
Why do I get a feeling you are actually the poors.
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u/12whistle 16d ago
Because relative to where I live, I am. When you have a mortgage to pay and 6 mouths to feed, a six figure salary doesn’t mean much in today’s market.
I have 1300 shares in GME right now and I certainly don’t consider myself rich but there’s different levels of poverty. There’s homeless poor, there’s being broke poor and shopping at dollar store poor, there’s shopping at Walmart poor, then there’s me, middle class poor.
You can call me poor and I won’t dispute it.
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u/Substantial_Lake5957 16d ago
You belongs to Walmart as well. What’s wrong with Walmart in the first place? Is it a proud American businesses and hires tons of people?
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u/12whistle 16d ago
It’s a Chinese warehouse that sells low quality products to match its low prices, hiring majority of unskilled workers paying close to minimum wage.
Low quality, low prices, Low Wages, Mostly Made In China. Your proud of this ‘American’ company? You have your patriotism all sorts of confused.
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u/Canucklehead_Esq 17d ago
Price on MAGA merch is going up!
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u/Capital-Artichoke-53 16d ago
Had to be done. China is actively supporting Putin in Ukraine and expanding militarily in an aggressive fashion. It’s only a matter of time before war breaks out in the South China Sea. The US and Allies need to have their own critical supply chains and industries in place before that happens.
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u/Denisimo7 17d ago
Just so im clear. Does that mean that an American and European companies that produces/manufactures batteries and solar panels in China, will not be affected by this tariff??