President Biden has increased the US tariff on Chinese-made EVs from 25 percent to 100 percent effective Aug. 1, 2024. According to a recent Crain’s Chicago Business article, “With new 100 percent tariffs the Chinese car business here will sink to zero.”

This upgraded tariff has already had a knock-on effect in the US market. Volvo, for example has delayed the introduction of its Chinese-made EX30 electric crossover as the automaker shifts US deliveries of that vehicle from China to Europe. Though the automaker has not specifically called out the tariff as the reason, it’s likely a contributing factor.

It’s also unclear what affect the tariff will have on currently imported Chinese-made vehicles that are available in the US market. For example, Buick Envision, Lincoln Nautilus and Volvo S90 are built in China and imported to the US. However, these vehicles are not EVs and therefore, would not be subject to the increased tariff. Polestar vehicles are EVs and made in China, so they would be subject to the increased tariff.

For more information on the impact of the new tariff, read the entire Crain’s Chicago Business article HERE. (login required)