The Biden administration has announced a significant increase in tariffs on a range of Chinese-manufactured goods, including electric vehicles. The latest round of hikes includes a 100 percent tariff on Chinese EVs, a dramatic increase from the 25 percent imposed previously. While GM does not currently import Chinese-made EVs to the U.S., it does build several all-electric models in China through the SAIC-GM joint venture.
Buick Electra E4
At present, GM’s Chinese-made, all-electric portfolio includes the Buick Electra E4 and E5, as well as Chinese-market versions of the Cadillac Lyriq and Optiq. Although GM has no known plans to import Chinese-made EVs stateside, the increased tariff poses a significant barrier to the possibility.
Currently, the Cadillac Optiq is manufactured exclusively in Wuhan, China, however GM will most likely manufacture the U.S.-spec Cadillac Optiq in North America. Potential production locations include GM’s Ramos Arizpe plant in Mexico, which also handles production for the Chevy Equinox EV and Chevy Blazer EV, or possibly GM’s Spring Hill plant in Tennessee, where the U.S.-spec Cadillac Lyriq is assembled.
The policy change reflects a broader strategy by the Biden administration to strengthen domestic manufacturing capabilities in critical sectors such as semiconductors, batteries, and EVs. The move also aligns with ongoing efforts encapsulated in legislative measures like the bipartisan infrastructure act and the Chips and Science Act, aiming to counteract competitive pressures from Chinese industrial policies perceived as unfair.
Per Automotive News, the latest round of hikes bring the tariff on Chinese-made semiconductors from 25 percent to 50 percent by 2025. Critical minerals like graphite and permanent magnet materials will also see a new 25 percent tariff in the 2024 calendar year. Lithium-ion batteries and other EV components will see an increase from 7.5 percent to 25 percent this year, with non-EV lithium-ion batteries facing a 25-percent tariff in 2026. Solar-cell tariffs increase to 50 percent this year, up from 25 percent previously.
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