China Likely To Retaliate Against US Tariffs On Electric Vehicles, Says Top Analyst Dan Ives: 'Game Of Thrones Continues To Play Out'
Portfolio Pulse from Anan Ashraf
Wedbush analyst Dan Ives predicts China will retaliate against the U.S. if tariffs on electric vehicle imports from China are increased. The Biden administration plans to raise tariffs on China's EVs from 25% to around 100%, with an additional 2.5% duty on all imported cars. This move could challenge Tesla Inc. and other U.S. automakers in the EV market and escalate trade tensions.
May 11, 2024 | 9:20 am
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NEGATIVE IMPACT
The planned U.S. tariff increase on Chinese EVs could significantly impact Tesla Inc. by intensifying competition and potentially affecting its market share and profitability in the U.S. market.
The increase in tariffs on Chinese EVs could lead to heightened competition for Tesla in the U.S. market, as low-cost Chinese EVs would face higher barriers to entry. This could indirectly benefit Tesla by reducing competition, but retaliatory measures by China or a trade war escalation could harm Tesla's interests, especially considering Tesla's significant presence in the Chinese market.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90