In a move to protect the domestic auto industry, President Joe Biden is set to announce higher tariffs on imported Chinese electric vehicles (EVs). The decision effectively closes off the possibility for China to affordably import their cheaper and often more desirable plug-in vehicles to the United States.

According to The Wall Street Journal, the Biden administration plans to quadruple tariffs on Chinese EVs, increasing them from the current 25 percent to a staggering 100 percent. Additionally, an extra 2.5 percent duty will be imposed.

The existing tariffs have already been successful in preventing Chinese companies from importing their EVs to the US. However, concerns have arisen regarding China's government subsidizing the auto manufacturing sector, which has prompted officials to take further action.

China leads the global car export market, with its auto industry being the largest in the world. Notably, about 30 percent of the country's vehicle sales are electric. China is also a major player in EV battery production, with many of its popular models gaining recognition for their design, functionality, and affordable price.

American automakers have long expressed anxiety over the potential influx of Chinese EVs, fearing that it could result in their own demise. Tesla CEO Elon Musk, who primarily sells cars in China, previously warned that Chinese manufacturers could "demolish" domestic rivals without proper trade barriers. Some politicians have even called for an outright ban on Chinese-made EVs.

This fear has heavily influenced the Biden administration's consumer and manufacturing policies. For instance, the $7,500 EV tax credit encourages automakers to source batteries from within the US or its trade partners. Exclusions apply to vehicles, batteries, and components from countries of concern, including China. Moreover, there has been an investigation into potential security risks associated with Chinese-produced smart car technology.

Although President Biden has kept many of the trade restrictions imposed on China by his predecessor, former President Donald Trump, Republicans have criticized his EV policies, claiming that they pave the way for a Chinese takeover.

Furthermore, it is expected that the higher tariffs will also apply to other clean energy goods, including solar panels and critical minerals. These measures come amidst reports that China is preparing to flood the global market with cheaper products amid its own economic challenges.

The lack of affordable electric vehicles in the US has contributed to a slowdown in sales, which could potentially hinder President Biden's efforts to reduce carbon emissions in the transportation sector. As the Biden administration takes steps to protect domestic industries, the future of Chinese electric vehicles in the US market remains uncertain.