- The US government is set to impose tariffs on key Chinese industries, Bloomberg reported.
- That means Chinese EVs, as well as solar cells and batteries, could be hit with higher taxes.
- It comes as fears grow about a wave of cheap Chinese EVs upending the US market.
President Joe Biden is taking aim at China's EV industry.
Citing people familiar with the matter, Bloomberg reported that the US government is set to impose new tariffs on a range of Chinese industries, including EVs.
Targeting key strategic sectors
Reuters reported that specific details about the value or categories of tariffs were limited, but the administration seemed to be focusing on strategic competitive and national security areas.
EVs appear under the most scrutiny, but batteries and solar cells could also be targeted under the plan. All could face higher taxes, although they reportedly won't be the broad hikes that Donald Trump has pledged if he's elected.
The decision could come as early as next week, although Bloomberg reported it could be delayed. It would mark the latest salvo in the government's attempt to protect the stuttering US EV industry from a wave of cheap Chinese exports.
Chinese EV producers such as BYD have so far largely avoided the US market due to pre-existing trade barriers, such as a 25% tariff on Chinese auto imports previously touted by President Donald Trump.
Intense competition
However, fears are rising over whether this may be about to change, with Chinese automakers increasingly looking to export their vehicles abroad as competition back home gets more intense.
Reports that auto giants MG, BYD, and Chery were planning to build factories in Mexico sparked alarm from US officials and politicians late last year, with lawmakers warning that the move could allow Chinese car companies "a backdoor to the US market."
Relief for US firms
The expected decision to target China's EV exports would come as a relief to US EV companies.
Tesla CEO Elon Musk said earlier this year that Chinese EV firms would "demolish" their Western rivals if trade barriers weren't put in place.
The reported new tariffs do not go as far as those suggested by Trump, who has said he would introduce a tax of more than 60% on all Chinese imports if elected president in November.
