Elon Musk has criticized the US government’s tariffs on Chinese electric vehicles, describing them as “not good” and a distortion of the car market.
Tesla’s CEO had previously supported trade barriers, but did an about-face Thursday during a video appearance at a Paris tech conference.
“Neither Tesla nor I requested these rates, in fact I was surprised when they announced them. “Things that inhibit freedom of exchange or distort the market are not good,” Musk said on Viva Technology via video link.
Joe Biden this month introduced new tariffs (a tax levied on foreign imports) on a variety of Chinese products, including electric vehicles, in an effort to support American manufacturing. The White House has maintained a series of tariffs introduced during Donald Trump’s presidency, while increasing others, including quadrupling tariffs on electric vehicles to more than 100%. The new measures affect $18bn (£14bn) worth of imported Chinese goods, according to officials.
In January, Musk said trade barriers were needed or China would “demolish most other auto companies in the world.” Tesla’s financial performance has been affected by competition from Chinese manufacturers, including downward pressure on prices. Last month, Tesla regained the title of the world’s largest electric vehicle maker from Chinese rival BYD, based on first-quarter auto sales.
Speaking at the Viva conference, Musk walked back his January comments. He said Tesla competed “pretty well” in the key Chinese market without tariffs. This week, a Chinese trade group said Beijing was considering imposing retaliatory tariffs. although in gasoline cars.
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“Tesla competes quite well in the Chinese market without tariffs or deferential support. “I’m in favor of no tariffs,” Musk said.