US Tariffs Hitting Chinese EVs - A Subtle Shock or a Major Blow?

The solar equipment, medical supply, and electric vehicle (EV) industries are preparing for the possible impact of the higher tariffs that U.S. President Joe Biden proposed on Chinese imports. Because of the low exposure, analysts do, however, expect a limited first impact on China's core sectors.

As per the China Passenger Car Association, Geely (GEELY.UL), the sole Chinese manufacturer selling electric vehicles to the United States, shipped slightly more than 2,200 units in the first quarter. Along with Volvo Cars (VOLCARb.ST), a company based in Sweden, Geely also conducts business in the United States under the Polestar brand. Polestar is stepping up attempts to create more units outside of China, even though the majority of its manufacturing is done in that country. Polestar's CEO, Thomas Ingenlath, stated that the company's sales distribution targets are 40% in Europe, 30% in the United States, and 30% in the Asia-Pacific area.

Ingenlath also disclosed plans to begin production in South Carolina in 2024 for the US and European markets.